The crowding-out effect from government borrowing to finance the public debt is reduced when:
A. The economy is experiencing a period of high inflation
B. The economy is operating at the full-employment level of output
C. Public investment complements private investment
D. Public investment substitutes for private investment
C. Public investment complements private investment
Economics
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The graph shows the market for cell phones. The government imposes a sales tax on cell phones at $10 a cell phone. The excess burden of the sales tax on cell phones is
A) $20,000. B) $15,000. C) $35,000. D) $7,500. E) $30,000.
Economics
Excess demand of a product exerts __________pressure on prices
a. Zero b. No c. Upward d. Downward
Economics