In the long run, the crowding-out effect of an increase in government purchases is
a. more complete than in the short run
b. canceled out by increases in infrastructure spending
c. less complete than in the short run
d. canceled out by improved consumer confidence
e. a multiple of the initial change in spending
A
Economics
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Most foreign exchange is bought and sold
A) by governments. B) by tourists. C) in over-the-counter markets. D) on the New York Stock Exchange.
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For a private closed economy, an unintended decline in inventories suggests that:
A. aggregate expenditures are less than the business sector expected them to be. B. aggregate expenditures exceed production. C. actual investment exceeds saving. D. planned investment is greater than consumption.
Economics