Crowding out occurs when:
a. an increase in private spending results in a decrease in government deficit.
b. an increase in private spending results in an increase in government deficit.
c. government deficit spending results in less private spending
d. government deficit spending results in more private spending.
c
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Open market operations refer to the Fed's transactions with ________
A) households B) private banks C) state governments D) firms
Which of the following statements is true for a given level of output?
A. Long-run average cost will always be greater than or equal to short-run average cost. B. Long-run average cost and short-run average cost will be equal because the firm will use different input combinations in each period. C. Long-run average cost will usually be greater than short-run average cost because more output is produced over the long run. D. Long-run average cost will always be less than or equal to short-run average cost.