Crowding out refers to the situation in which
A) borrowing by the federal government raises interest rates and causes firms to invest less.
B) foreigners sell their bonds and purchase U.S. goods and services.
C) borrowing by the federal government causes state and local governments to lower their taxes.
D) increased federal taxes to balance the budget causes interest rates to increase and consumer credit to decrease.
Correct Answer:
Verified
Q26: The crowding-out effect stresses that increased government
Q27: Ricardian Equivalence maintains that an increase in
Q28: The crowding-out effect implies that a
A) budget
Q29: The crowding-out effect indicates that budget deficits
A)
Q30: In the new classical model, a $100
Q32: The crowding-out effect suggests that
A) restrictive fiscal
Q33: The new classical model states that a
A)
Q34: Are jobs the key to economic progress
Q35: Which of the following tends to make
Q36: If the government ran a major budget
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