Multiple Choice
According to the crowding-out effect,a decrease in government spending
A) increases the interest rate and so increases investment spending.
B) increases the interest rate and so decreases investment spending.
C) decreases the interest rate and so increases investment spending.
D) decreases the interest rate and so decreases investment spending.
Correct Answer:
Verified
Correct Answer:
Verified
Q14: Keynes used the term "animal spirits" to
Q35: In principle,the government could increase the money
Q49: In the short run,an increase in the
Q130: Which of the following is the most
Q131: Suppose that businesses and consumers get much
Q132: An increase in government purchases is likely
Q133: If the stock market booms,<br>A)aggregate demand increases,
Q136: Keynes argued that<br>A)irrational waves of pessimism would
Q137: Suppose that there are both multiplier and
Q214: If Congress cuts spending to balance the