Crowding out suggests that
A) high taxes reduce both consumption and saving.
B) increases in consumption are always at the expense of saving.
C) increases in government spending may raise the interest rate, thereby reducing investment.
D) increases in government spending will close a recessionary gap.
C
Economics
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An opportunity cost is
A) an opportunity lost. B) only the explicit costs of an action. C) only the costs a person can consciously articulate at the moment of deciding. D) none of the above.
Economics
A(n) ________ in private expenditures as a result of a(n) ________ in government purchases is called crowding out
A) increase; increase B) decrease; decrease C) decrease; increase D) increase; decrease
Economics