Suppose the United States pursued an expansionary fiscal policy to stimulate its economy and eliminate a recession. The crowding-out effect suggests that:
A. net exports would increase, thus increasing aggregate demand and partially reinforcing the fiscal policy.
B. private investment would decrease, thus increasing aggregate demand and partially offsetting the fiscal policy.
C. private investment would decrease, thus decreasing aggregate demand and partially offsetting the fiscal policy.
D. net exports would increase, thus decreasing aggregate demand and partially offsetting fiscal policy.
Answer: C
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An economist estimates the value of a nature preserve by calculating the price premium people pay for houses located adjacent to the preserve. This is an example of what type of economic valuation?
a. Hedonic pricing b. Production function valuation c. Contingent valuation d. Travel cost method e. Engineering cost valuation
Which of the following was established first?
a. gatt b. nafta c. wto d. a and b were established at the same time