One of the major drawbacks of crowding out is that it:
a. decreases the rates of interest in the economy
b. increases the rates of interest in the economy.
c. decreases the short-run growth rate of the economy.
d. prohibits foreign investments in an economy.
b
Economics
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If the price level rises but the money wage rate does not, then firms will hire ________ labor and the quantity of real GDP supplied will ________
A) more; increase B) the same amount of; not change C) less; decrease D) more; not change E) less; increase
Economics
In an open economy firms sell goods and services to:
A) households, government, and foreigners. B) just households. C) just the government. D) none of the above.
Economics