The crowding-out effect refers

Assignment Help Microeconomics

Reference no: EM13685025

The crowding-out effect refers to:

A- The inflation rate to rise when the unemployment rate is low.

B- Higher future taxes accompanying budget deficits to reduce private consumption.

C- Increases in private savings to reduce interest rates and, thereby, crowd-out government

D- Higher interest rates and reduced private spending that result from financing federal budget deficits.

Reference no: EM13685025

Questions Cloud

Practice using the concept of asymmetric information : Many automotive dealerships, such as BMW, sell low mileage late model used cars, with warranties on defects and repairs that offer more coverage for longer periods of time than the warranties on their brand new cars. Describe the rationale for this p..

Variable in the index of leading indicators : Which of the following is not a variable in the index of leading indicators?

The sum of payments made to resource owners : The sum of payments made to resource owners for the use of their resources is:

Emphasized by supply-side economics : Which of the following is emphasized by supply-side economics?

The crowding-out effect refers : The crowding-out effect refers to:

Crowding out occurs when the federal government : Crowding out occurs when the federal government:

Absence of trade problem : The world price of wine is below the price that would prevail in the United States in the absence of trade. Assuming that American imports of wine are a small part of total world wine production, draw a graph for the U.S. market for wine under free t..

Economic principle that consumers are willing to consume : The economic principle that consumers are willing to consume more of a good when price is low is depicted by the:

Rate of growth in the productivity of labor : The rate of growth in the productivity of capital is one percent the rate of growth of capital is two percent the rate of growth of labor is one percent and the rate of growth in the productivity of labor is three percent. From this we know that per ..

User Account

All Pages