Solved

Refer to the Above Diagram

Question 184

Multiple Choice

Refer to the above diagram.Initially assume that the investment demand curve is I<sub>d1</sub>.Which of the following effects of a budget deficit might shift the investment demand curve from I<sub>d1</sub> to I<sub>d2</sub>, wholly offsetting any crowding-out effect? A) an improvement in profit expectations by businesses B) a decrease in saving C) a decline in the interest rate D) an increase in the marginal propensity to consume Refer to the above diagram.Initially assume that the investment demand curve is Id1.Which of the following effects of a budget deficit might shift the investment demand curve from Id1 to Id2, wholly offsetting any crowding-out effect?


A) an improvement in profit expectations by businesses
B) a decrease in saving
C) a decline in the interest rate
D) an increase in the marginal propensity to consume

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q20: The crowding-out effect refers to the possibility

Q27: Which of the following is an example

Q30: In an economy, the government wants to

Q106: When the economy is at full employment:<br>A)one

Q130: Proponents of the notion of a "political

Q169: Which of the following represents the most

Q174: Assume that aggregate demand in the economy

Q181: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB6686/.jpg" alt=" Refer to the

Q186: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB6686/.jpg" alt=" Refer to the

Q189: The greater the progressiveness of the tax