Crowding out refers to the situation in which
a. borrowing by the federal government raises interest rates and causes firms to invest less.
b. foreigners sell their bonds and purchase U.S. goods and services.
c. borrowing by the federal government causes state and local governments to lower their taxes.
d. increased federal taxes to balance the budget causes interest rates to increase and consumer credit to decrease.
A
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By designating Federal Reserve currency as legal tender, the federal government
A) has ensured that Federal Reserve currency will serve as money. B) has guaranteed that Federal Reserve currency may be exchanged for an equivalent amount of gold or silver. C) has mandated that Federal Reserve currency be accepted for payment of debts. D) has mandated that Federal Reserve currency be accepted by citizens of foreign countries in exchange for their countries' currencies.
Acme Inc found a tricky way to conform to the letter of the law with respect to new EPA regulations, even though they violated the spirit of the law. This is called
A) the capture theory. B) collusive response. C) share-the-gains, share-the-pains theory. D) creative response.