A crowding-in effect occurs
A) When an increase in government spending leads to an increase in savings.
B) When increased government borrowing reduces the quantity of funds that businesses can borrow.
C) That increases investment each time government spending increases.
D) When the increase in GDP caused by the increased government spending makes businesses see more investment projects as profitable.
Correct Answer:
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Q281: Which of the following statements is true
Q282: Which statement is true?
A)The Keynesians and the
Q283: The "crowding-out effect" suggests that
A)tax increases are
Q284: The "crowding-in" effect suggests that
A)government spending is
Q285: Which statement is true?
A)During prosperity,federal government borrowing
Q287: In the 1980s we ran budget _
Q288: Which of the following WOULD NOT be
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
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