In the presence of the crowding out effect, the purchase of Treasury bonds by the government will result in:
a. an increase in the interest rates.
b. a decrease in the price of bonds.
c. a decline in the private sector spending.
d. an increase in the private sector spending.
e. a decrease in the rate of inflation.
d
Economics
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The precautionary principle is most likely to be applied when some impacts
a. Involve option values b. Are irreversible c. Are converted to present values d. Are estimated using the avoided cost approach e. Involve indirect use values
Economics
If the substitution effect dominates the income effect, then an increase in the wage rate will increase the quantity of labor supplied by an individual
a. True b. False
Economics