Multiple Choice
Suppose that the U.S. has an open economy and is currently at full employment. When the country ends its war in Afghanistan and cuts military spending, crowding in will take the form of:
A) an increase in investment spending.
B) an increase in net exports.
C) an increase in consumption spending.
D) All of the above are correct.
Correct Answer:

Verified
Correct Answer:
Verified
Q135: The production function is the mathematical representation
Q136: A tax on labor causes a smaller
Q137: Define "crowding out ."
Q138: A tax on labor causes a larger
Q139: The production function described in the chapter
Q141: The production function is Y = 2K<sup>0.5</sup>L<sup>0.5</sup>.
Q142: In a production function that is graphed
Q143: What happens to the number of workers
Q144: An increase in the size of the
Q145: According to the real business cycle theory,