The basic idea of crowding out is that a budget:
A. surplus will cause the interest rate to go up.
B. deficit will cause the interest rate to go up.
C. deficit will cause the interest rate to go down.
D. surplus will cause the interest rate to go down.
Answer: B
Economics
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To a Marxist, income inequality derives from
a. purely random events b. incompetent government policy c. unequal education d. unequal distribution of property e. unequal abilities of individuals
Economics
Bell Bank has $2 million in deposits and $1 million in reserves, with a reserve requirement ratio of 12 percent. If the Fed lowers the reserve requirement ratio to 10 percent, Bell Bank’s new excess reserves could potentially expand the money supply by ______.
a. $400,000 b. $760,000 c. $40,000 d. $240,000
Economics