According to the traditional (crowding-out) view, which of the following is most likely to result if a substantial portion of government expenditures is financed by borrowing rather than taxation?
a. no change in interest rates and an increase in saving
b. higher interest rates and an outflow of foreign capital
c. higher interest rates and a reduction in private domestic investment
d. lower interest rates and an inflow of foreign investment
C
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A firm's primary interest when it hires an additional worker is
A) whether or not the new worker gets along with the firm's existing workers. B) the cost of hiring the additional worker. C) how the average output of the firm will be affected by this new worker. D) the extra revenue the firm realizes from hiring that worker.
A curve showing the lowest cost at which a firm is able to produce a given level of output in the long run is
A) a long-run average total cost curve. B) a minimum efficient scale curve. C) a long-run production function. D) a long-run marginal cost curve.