The crowding out of consumer spending by an increase in taxes will be the greatest when
A) consumers would have spent the entire amount they now must pay in taxes.
B) consumers would have saved the entire amount they now must pay in taxes.
C) consumers would have spent only a fraction of the amount they now must pay in taxes.
D) the government has a history of increasing taxes on a regular basis.
A
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The scale of transactions in the international capital market has
A) grown more quickly than world GDP since the early 1970s. B) grown less quickly than world GDP since the early 1970s. C) grown about the same rate as the world GDP since the early 1970s. D) been fixed by international regulations. E) decreased more quickly than world GDP since the early 1970s.
A situation in which the price of an asset rises significantly above the asset's fundamental value is referred to as
A) asset liquidity. B) dissipation. C) a bubble. D) magnification.