Crowding out makes fiscal policy more complicated to formulate because it can ________ the theoretical magnitude of the_______.
A. increase; multiplier effect
B. reduce; multiplier effect
C. reduce; interest rate
D. increase; interest rate
Answer: B
Economics
You might also like to view...
Marginal utility theory predicts that when the price of one good rises, the demand for another good is a substitute increases. This change occurs because of
A) an increase in the marginal utility per dollar from the substitute good. B) an increase in the marginal utility of the substitute good. C) a decrease in the marginal utility per dollar from the good whose price has risen. D) a decrease in the marginal utility of the good whose price has risen.
Economics
A matched sale-purchase transaction is also known as a
A) reverse repo. B) discount loan. C) put option. D) federal funds loan.
Economics