Crowding out is most likely to occur with which of the following changes?
A) Decrease in government spending
B) Increase in budget surplus
C) Increase in budget deficit
D) Decrease in the real interest rate
E) Decrease in trade deficit
Ans: C) Increase in budget deficit
Economics
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The relationship between real GDP and potential GDP over the business cycle can be best summarized by which of the following statements?
A) Real GDP fluctuates around potential GDP. B) Real GDP is always equal to potential GDP. C) Real GDP cannot be greater than potential GDP. D) Real GDP cannot be less than potential GDP. E) Real GDP cannot be equal to potential GDP.
Economics
Utilitarianism is the idea that only
A) competition brings efficiency. B) efficiency brings equality. C) income equality is fair. D) efficiency is fair.
Economics