If private sector investment does not respond much to interest rate changes, then
A) there will be more crowding out when expansionary policies are undertaken.
B) there will be less crowding out when expansionary policies are undertaken.
C) fiscal policy will be less effective than monetary policy.
D) monetary policy will be more effective than fiscal policy.
Answer: B) there will be less crowding out when expansionary policies are undertaken.
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Marginal utility: a. generally increases as more of a good is acquired
b. generally remains constant as more of a good is acquired. c. generally decreases as more of a good is acquired. d. begins to fall when total utility reaches its highest point.
To an economist, the cost of a college education
a. includes the income that the student could have earned during the time spent in college. b. can be measured solely by the dollar cost of tuition, books, and other fees. c. includes only the cost of schooling, not the cost of housing and food. d. excludes financial aid in computation of the cost of schooling. e. All of the above are correct.