Assume that fewer businesses offer new bonds to raise investment funds when government borrowing increases interest rates. This would be an example of:
a. Ricardian equivalence.
b. overestimating the tax multiplier.
c. crowding out.
d. increased consumption.
e. the balanced-budget multiplier.
c
Economics
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A departure from the New Zealand model, in which the central bank implements an inflation target set by the government, the ECB operates according to the German model, in which the central bank:
A) has ceded power to the administration. B) has authority to set and implement the inflation target. C) functions only in a technical sense. D) is replaced by a currency board.
Economics
The slope of a typical production possibilities curve is:
A) 0. B) vertical. C) positive. D) negative.
Economics