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
Answer: A
Economics
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If the nominal interest rate in an economy is 8% and the real interest rate is 4%, the inflation in the economy is:
A) 4%. B) 32%. C) 12%. D) 8%.
Economics
Refer to Figure 11-4. The movement from A to B to C illustrates
A) diminishing returns to labor. B) an improvement in technology. C) a decline in capital per worker. D) diminishing returns to capital.
Economics