The crowding-out effect refers to which of the following?
A) reductions in aggregate demand that occur as the government enacts a fiscal policy that is
intended to eliminate an inflationary gap
B) price increases that result in less purchasing power for consumers
C) increases in consumption spending that leave fewer resources available for the economy to use
to create capital
D) reductions in private investment spending that offset increases in other spending
Answer: D) reductions in private investment spending that offset increases in other spending
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What are two main obstacles to increased international integration?
What will be an ideal response?
People who provide you with goods and services
a. are acting out of generosity. b. do so because they get something in return. c. have chosen not to become interdependent. d. are required to do so by the government.