Multiple Choice
The crowding-out effect is the tendency for
A) lower private saving to decrease investment.
B) higher government budget deficits to increase total savings.
C) higher government budget deficits to decrease investment.
D) higher private savings to decrease government budget surpluses.
E) lower private saving to increase the budget deficit.
Correct Answer:
Verified
Correct Answer:
Verified
Q243: The equilibrium real interest rate is 5
Q244: Explain the relationship between the real interest
Q245: "A government surplus can decrease investment through
Q246: <span class="ql-formula" data-value="\begin{array} { c c c
Q247: If firms became more optimistic about the
Q249: 10.4 Chapter Figures<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1454/.jpg" alt="10.4 Chapter
Q250: When disposable income increases, saving will<br>A) decrease
Q251: Discuss why a budget deficit results in
Q252: If the real interest rate decreases, people
Q253: An increase in wealth _ saving supply