The crowding in of private investment is more likely to occur, when _____
a. there is a depreciation of domestic currency
b. interest rates increase significantly
c. a contractionary gap exists in an economy
d. the deficits lower expectations about economic growth
e. an expansionary gap exists in an economy
c
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Figure 33-7
?
In Figure 33-7, the case for expansionary monetary policy and fiscal policy is strongest at point
A. A. B. B. C. C. D. D.
Amy can produce either 5000 pounds of cheese or 20 cars per year. Mike can produce either 5000 pounds of cheese or 10 cars per year. If both Amy and Mike produce the good in which they have comparative advantage, the total annual output of this economy will be ________.
A. 10,000 pounds of cheese and 30 cars B. 10,000 pounds of cheese C. 5,000 pounds of cheese and 20 cars D. 30 cars