In the crowding-out effect, ______.
a. government purchases increase interest rates, which crowd out investment and consumer spending and shift the aggregate demand curve to the left
b. higher interest rates increase investment and consumer spending, which crowd out government purchases and shift the aggregate demand curve to the left
c. government purchases lower interest rates, which crowd out unemployment and inflation and shifts the aggregate demand curve to the right
d. low interest rates lead to increased government spending, which is crowded out by investment and consumption spending and shifts the aggregate demand curve to the right
a. government purchases increase interest rates, which crowd out investment and consumer spending and shift the aggregate demand curve to the left
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The skills, training, and education possessed by workers contribute to economic growth
A. by increasing saving. B. by increasing the quality of labor. C. by increasing the quantity of labor. D. by increasing real wages.
If an 8 percent decrease in the price of lobster leads to a 15 percent decrease in the quantity of lobster supplied, then the supply of lobster is
A) unitarily elastic. B) elastic. C) unit elastic. D) perfectly inelastic.