The economy is initially at point 1. Which of the following events would cause a shift that would help offset the crowding-out effect? An increase in:
Refer to the above graph.
A. Interest rates caused by a change in Federal Reserve policy
B. Profit expectations resulting from an increase in government spending
C. Business taxes levied by government to pay for new government programs
D. The degree of excess capacity in business stemming from a recession
B. Profit expectations resulting from an increase in government spending
You might also like to view...
The Chinese famine occurred as a result of:
a. Deng's reforms b. Zhou's reforms c. The Cultural revolution d. The Great Leap forward e. The 1949 land reform
When Lonnie produces 1 pair of cowboy boots his costs total $300. When he produces 2 pairs of cowboy boots his total costs are $500. This means that Lonnie's marginal cost of producing the second pair of cowboy boots is $200.
Answer the following statement true (T) or false (F)