The decrease in consumption and investment interest-related spending that occurs when the interest rate rises as government spending increases is called:
A) crowding in.
B) crowding out.
C) neutral.
D) none of the above.
B
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What is the difference between an "increase in demand" and an "increase in quantity demanded"?
A) An "increase in demand" is represented by a movement along a given demand curve, while an "increase in quantity demanded" is represented by a rightward shift of the demand curve. B) There is no difference between the two terms; they both refer to a movement downward along a given demand curve. C) An "increase in demand" is represented by a rightward shift of the demand curve while an "increase in quantity demanded" is represented by a movement along a given demand curve. D) There is no difference between the two terms; they both refer to a shift of the demand curve.
Changes in inventory investment are ________ for the Fed to use to time changes in monetary policy
A) too short-lived B) short-lived enough C) gradual enough D) too gradual