When interest rates fall, people are
a. More likely to borrow
b. Less likely to borrow
c. Not likely to change borrowing patterns
d. None of the above
a
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People on welfare often face the highest marginal tax rates of anyone because ______
a. of our regressive income tax system b. of the non-deducibility of state sales taxes c. of the loss of entitlement payments when earning additional income d. of increasing marginal utility of income
The crowding-out effect indicates that increased government borrowing will lead to:
a. an increase in consumption by households and an increase in investment spending by firms. b. an increase in consumption by households and a decrease in investment spending by firms. c. a decrease in consumption by households and an increase in investment spending by firms. d. a decrease in consumption by households and a decrease in investment spending by firms.