A federal budget deficit places a genuine burden on future generations when the
a. crowding-out effect is stronger than the crowding-in effect.
b. crowding-in effect is stronger than the crowding-out effect.
c. crowding-out and crowding-in effects work in opposite directions.
d. crowding-out and crowding-in effects operate in the same direction.
a
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The U.S. economy is experiencing rising output, rising employment, rising incomes and falling unemployment. These conditions best describe a business cycle ________
A) recession B) peak C) trend D) trough E) expansion
Consider a world of two countries facing opportunity costs and producing only wheat and cloth. In one hour, residents of Country A can produce a maximum of either 1 unit of wheat or 0.5 unit of cloth,
whereas residents of Country B can produce a maximum of either 0.3 unit of wheat or 0.4 unit of cloth. Country B should export A) wheat and cloth; country A should not export anything. B) wheat and country A should export cloth. C) nothing and country A should export both wheat and cloth. D) cloth and country A should export wheat.