The crowding-out effect refers to the situation where
A) foreign spending is favored over domestic spending.
B) government borrowing reduces private sector borrowing and spending.
C) the United States Treasury prints new money that the government uses to force increases in private investment.
D) the creation of large amounts of money to finance government borrowing produces an inflation that forces private spending to decrease.
Correct Answer:
Verified
Q289: Automatic stabilizers result in _ fluctuations in
Q290: Statement I: In 2009 Social Security tax
Q291: Federal government budget deficits
A)tend to increase when
Q292: Which of the following is correct?
A)Both conservative
Q293: Crowding-out occurs when
A)workers lose jobs as a
Q295: An annually balanced budget
A)is the same as
Q296: Between 1998 and 2000,
A)the federal budget was
Q297: If an economist says that fiscal policy
Q298: Crowding-out
A)refers to the idea that increases in
Q299: The "crowding-out" debate refers to the disagreement
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