Multiple Choice
The crowding-out effect occurs when
A) foreign investors crowd out U.S. investors in the market for loanable funds.
B) the federal government's demand for loanable funds due to a higher budget deficit crowds out the private demand in the market for loanable funds.
C) institutional investors crowd out individual investors in the market for loanable funds.
D) firms and municipal governments crowd out households in the market for loanable funds.
Correct Answer:
Verified
Correct Answer:
Verified
Q29: The required return to implement a given
Q30: The expected impact of an increased expansion
Q31: If the aggregate demand for loanable funds
Q32: At any point in time, households and
Q33: If foreign interest rates fall, foreign firms
Q35: According to the Fisher effect, when the
Q36: The quantity of loanable funds supplied is
Q37: If the real interest rate was negative
Q38: Canada and the United States are major
Q39: Assume that foreign investors who have invested