What is the marginal propensity to consume for the economy described in Scenario 10.1?

If the long-run average cost curve for the industry is flat what implication does this have for the relationship between the average cost curves for small and large firms?

What will be an ideal response?

The crowding-out effect refers to:

A. higher interest rates and reduced private spending that results from financing federal budget deficits. B. higher future taxes accompanying budget deficits to reduce private consumption. C. the inflation rate to rise when the unemployment rate is low. D. increases in private savings to reduce interest rates and, thereby, crowd-out government