When private expenditures decrease as a result of increased government spending, this is known as
A) the multiplier effect. B) the stabilizer effect.
C) government deficit spending. D) the crowding out effect.
D
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Which of the following gives rise to a negative externality?
A) Sudden increase in the price of wheat due to a fall in supply B) Sudden increase in the demand for diamonds leading to an increase in their price C) Deforestation leading to the extinction of many species D) Globalization leading to creation of many new job opportunities
Kevin deposits a certain sum in a bank at an annual compounded rate of interest for two years. Interest in the second year will be calculated on:
A) the principal amount only. B) the amount in the account after one year. C) the sum of the principal amount and the amount in the account after one year. D) the difference in the principal amount and the amount in the account after one year.