The essence of the monetarists view on crowding out is that higher government spending which is not financed by new money creation simply
A) reduces private spending by an equal amount.
B) decreases the demand for money.
C) increases investment.
D) increases aggregate demand in the in the long run.
A
Economics
You might also like to view...
Implicit costs involve an exchange of money
Indicate whether the statement is true or false
Economics
Which of the following would be included in the government expenditures component of GDP?
a. The export of 100 fighter jets to Japan b. Construction costs of a new public school building c. Food stamps used by the Smith family d. A $1,000 check issued by the federal government as part of the Pell Grant program to help college students pay for school
Economics