The crowding-out effect implies that restrictive fiscal policy will
a. increase aggregate demand and employment.
b. lead to a significant increase in the natural rate of unemployment.
c. be highly effective against inflation.
d. reduce real interest rates.
D
Economics
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A monopoly is distinguished from a firm operating under any other market structure in the following way: the monopoly
A) can choose its output level. B) faces a demand curve which is identical to the market demand curve. C) can choose its level of cost. D) does not produce at a profit-maximizing level of output. E) charges a price higher than its average revenue.
Economics
What is meant by the term "internalizing an externality"? How does a Pigovian tax or subsidy internalize an externality?
What will be an ideal response?
Economics