Multiple Choice
Crowding out will be greater
A) the less sensitive consumption spending is to changes in the interest rate.
B) the further equilibrium GDP is below potential GDP.
C) the more sensitive investment spending is to changes in the interest rate.
D) if the economy is in recession,rather than at full employment.
Correct Answer:
Verified
Correct Answer:
Verified
Q5: The fastest growing category of government expenditure
Q6: Expansionary fiscal policy involves increasing government purchases
Q7: Since the Social Security system began in
Q8: Figure 16-2 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1236/.jpg" alt="Figure 16-2
Q9: Tax increases on business income decrease aggregate
Q11: If government increases taxes by the same
Q12: If real GDP exceeded potential real GDP
Q13: If Congress and the president pursue an
Q14: List the five categories of federal government
Q15: The cyclically adjusted budget is calculated at