Which of the following is not an example of crowding out?
A) Government purchases rise, the budget deficit rises, the federal government's demand for loanable funds rises, the interest rate rises, and investment falls.
B) Government spends more on X, prompting individuals to spend less on X.
C) Taxes decline, the budget deficit rises, the federal government's demand for loanable funds rises, the interest rate rises, the demand rises for U.S. dollars, the dollar appreciates, and net exports decline.
D) Business firms spend more on X, prompting households to spend less on Y.
E) none of the above
D
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A commercial society, as described by Adam Smith, develops when
A) maximizing income becomes the ultimate objective for most people. B) more people are employed in service industries than in agriculture and manufacturing. C) private interest replaces the public interest. D) the division of labor extends itself throughout the society. E) traditional values give way to commercial values.
________: the process of purchasing commodities in one market at a low price and rapidly selling them in another market at a higher price
Fill in the blank(s) with correct word