When an increase in government purchases causes firms to purchase additional plant and equipment, we have seen a demonstration of
A. the multiplier effect.
B. supply-side economics.
C. the crowding-out effect.
D. the investment accelerator.
E. none of these answers.
Ans: D. the investment accelerator.
Economics
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Which of the following pieces of legislation is NOT aimed at curbing the negative effects of asymmetric information?
A. Securities and Exchange Act B. Lanham Act C. Robinson-Patman Act D. Truth in Lending Simplification Act
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An increase in _________ will shift the budget line to the right.
a. supply b. capital c. resources d. demand e. income
Economics