According to the traditional (crowding-out) view, large budget deficits during normal times will lead to

a. bank failures in the future.
b. a smaller capital stock in the future.
c. lower interest rates in the future.
d. a bankrupt government in the future.

B

Economics

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Firms are often more efficient than markets as coordinators of economic activity because

A) firms can achieve lower transaction costs. B) markets cannot coordinate production. C) firms don't rely on economies of scale while markets do. D) firm coordination is always more economically efficient than market coordination.

Economics

The increase in income generated by the additional government expenditure decreases the demand for money

Indicate whether the statement is true or false

Economics