Which would tend to reduce the crowding-out effect that occurs when the Federal government increases its borrowing to finance a deficit?
A. The economy is operating at full employment
B. The economy is operating at less than full employment
C. The expenditures fail to contribute to the development of human capital
D. The deficit financing reduces the profit expectations of business firms
B. The economy is operating at less than full employment
Economics
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In August 2007, Sun Trust Bank has $83 million in loans and $114 million in M1 deposits. If Sun Trust is holding $4 million in reserves, the bank's reserve ratio is
A) $31 million. B) 4.8 percent C) 3.5 percent. D) 72.8 percent.
Economics
Suppose that the price elasticity of demand for museum tickets is equal to –1.8 . If the price of a museum ticket rises by 30 percent, what will happen to quantity demanded?
What will be an ideal response?
Economics