If deficit spending causes an increase in economic activity, it may "crowd in" some potential investment spending

a. True
b. False
Indicate whether the statement is true or false

True

Economics

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Suppose that a firm is currently earning revenues that are smaller than its total costs. The firm's managers are trying to decide whether or not the firm should shut down in the short run

On what information should the manager's decision be based?

Economics

An investment tax credit will lead to

a. a lower equilibrium interest rate in equilibrium b. a decrease in household consumption spending in equilibrium c. slower economic growth d. lower equilibrium investment in physical capital e. a increase in household consumption spending

Economics