What is the meaning of the term "crowding out"?
a. The exclusion of private investors in the foreign exchange market due to a central bank fixing of the exchange rate.
b. A lower consumption level because of high and accelerating inflation.
c. A reduction in private borrowing due to the government-induced increase in the real risk-free interest rate.
d. None of the above.
.C
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Auto workers laid off from Hot-Rod Autoworks as the result of a recession are considered
A) seasonally unemployed. B) frictionally unemployed. C) structurally unemployed. D) cyclically unemployed.
The law of demand implies that:
A) consumers are not responsive to price changes. B) consumers will, all other things unchanged, buy more at lower prices. C) sellers will, all other things unchanged, offer more on the market at higher prices. D) sellers will, all other things unchanged, offer less on the market at lower prices.