Multiple Choice
Which of the following terms refers to the reduction in demand that results when a fiscal expansion raises the interest rate?
A) the multiplier effect
B) the crowding-out effect
C) the accelerator effect
D) the Ricardian equivalence effect
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q2: According to liquidity-preference theory, if the quantity
Q13: When the Bank of Canada buys government
Q47: How do tax cuts and government expenditure
Q71: If the interest rate is below a
Q87: For Canada, the most important reason for
Q148: If the MPC is 0.75 and there
Q152: Which of the following lists of events
Q153: Which of the following policy alternatives would
Q154: Which of the following is NOT a
Q155: Most economists believe that a cut in