The crowding out of private spending by government spending will be greater the
A) less sensitive consumption, investment, and net exports are to changes in interest rates.
B) more sensitive consumption, investment, and net exports are to changes in interest rates.
C) less sensitive consumption, investment, and net exports are to changes in the price level.
D) more sensitive consumption, investment, and net exports are to changes in the price level.
Answer: B
You might also like to view...
Which of the following is not an explanation for the revival in the growth of productivity starting in the mid-1990s?
A) Cell phones and wireless Internet access have increased worker flexibility. B) Internet use has increased the efficiency of how firms buy and sell to each other and to consumers. C) Information and communication innovations are increasingly geared toward improving business processes and not consumer products. D) Faster computers have sped up data processing.
If the stores could co-operate, what is the new Nash equilibrium?
a. Megastore $95 and Superstore $80 b. Megastore $305 and Superstore $55 c. Megastore $65 and Superstore $285 d. Megastore $165 and Superstore $115