Crowding out can best be defined as
a. higher interest rates caused by restrictive monetary policy, which reduces investment.
b. higher interest rates caused by restrictive monetary policy, which increases saving and reduces consumption spending.
c. government budget deficits causing a drop in private borrowing because of higher interest rates.
d. government budget deficits causing a drop in interest rates, which reduces private saving.
c
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American farmers who sell beef to Europe benefit most from
A) a decrease in the dollar price of euros. B) an increase in the dollar price of euros. C) a constant dollar price for euros. D) a European ban on imports of American beef.
In the 1970s the international price of crude oil rocketed because:
a. the demand for crude oil fell short of its supply. b. a new source of natural gas was discovered. c. the demand for automobiles increased drastically. d. the supply of oil was restricted by the oil exporting countries. e. of the appreciation of dollar in the international market.