Because of crowding out
A) expansionary fiscal policy during a recession must involve a tax increase.
B) expansionary fiscal policy during a recession is reinforced by private investment spending.
C) the effect of expansionary fiscal policy is partially offset by the decline in investment spending caused by higher interest rates.
D) expansionary fiscal policy is completely achieved even with a decline in investment spending.
C
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You hold a put option on December corn with a strike price of $4.00/bu. The December corn futures price is $4.75/bu. The intrinsic value of the option is:
A. $4.00/bu B. $0.00/bu C. $0.75/bu D. -$0.75/bu
The government budget surplus equals
A) government purchases plus transfers. B) government receipts minus government outlays. C) government purchases minus net receipts. D) government purchases minus transfers.