Homework Answers
Option B.
- The crowding in effect involves the increase in government borrowings and decrease in the taxes.
- This will stimulate more aggregate demand within the economy and create more unemployment.
- The crowding in effect as opposed to the crowding out effect depends on the fact that, a decrease in taxes will cause the output to increase when the aggregate demand increases, which induces more investment.
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13. The crowding-in effect depends on the fact that often a decrease in taxes causes a(n)...
The crowding-out from expansionary fiscal policy causes real interest rates to (increase/decrease) investment to (decrease/increase) , and...
The crowding-out from expansionary fiscal policy causes real interest rates to (increase/decrease) investment to (decrease/increase) , and aggregate demand to shift (left/right),(decreasing/increasing) the overall impact of expansionary economic policy.
Assume that investment spending depends only on the interest rate and no longer depends on output....
Assume that investment spending depends only on the interest rate and no longer depends on output. Given this information, a decrease in money supply: a. will cause investment to increase. b. may cause investment to increase or decrease. c. will have no effect on output. d. will cause a reduction in output and have no effect on the interest rate. e. will cause investment to decrease.
16. to the wealth effect, an increase in the price level causes ease in real wealth and more purchases b. An incr C. A decrease d. rease in real wealth and fewer purchases se in real wealth and f...
16. to the wealth effect, an increase in the price level causes ease in real wealth and more purchases b. An incr C. A decrease d. rease in real wealth and fewer purchases se in real wealth and fewer purchases A decrease in r price level increase tends to reduce net exports, thereby reducing the amount of real goods a. The b. The international banner effect C. rvices purchased in the U.S. Economists refer to this phenomenon as international wealth...
- Question 1 (5 marks) I. Suppose money demand (on the horizontal axis) is plotted against...
- Question 1 (5 marks) I. Suppose money demand (on the horizontal axis) is plotted against the nominal interest rate on the vertical axis). This money demand curve will shift to the right when which of the following occurs? a. an increase in income. b. a reduction in the interest rate. c. an increase in the money supply. d. a decrease in the money supply. II. At the current interest rate, suppose the supply of money is less than the...
t t Question 1 (5 marks) I. Suppose money demand (on the horizontal axis) is plotted...
t t Question 1 (5 marks) I. Suppose money demand (on the horizontal axis) is plotted against the nominal interest rate on the vertical axis). This money demand curve will shift to the right when which of the following occurs? a. an increase in income. b. a reduction in the interest rate. c. an increase in the money supply. d. a decrease in the money supply. II. At the current interest rate, suppose the supply of money is less than...
Question 1 (5 marks) I. Suppose money demand (on the horizontal axis) is plotted against the...
Question 1 (5 marks) I. Suppose money demand (on the horizontal axis) is plotted against the nominal interest rate (on the vertical axis). This money demand curve will shift to the right when which of the following occurs? a. an increase in income. b. a reduction in the interest rate. c. an increase in the money supply. d. a decrease in the money supply. II. At the current interest rate, suppose the supply of money is less than the demand...
Crowding out occurs when the government Increases taxes, thus causing a decrease in consumption. Issues debt,...
Crowding out occurs when the government Increases taxes, thus causing a decrease in consumption. Issues debt, thus making it more difficult for the private sector to issue debt. Prints money, which displaces currency. Business’ face a lower interest rate of their issuance of bonds
Just need the answers please answer in 10 minutes A decrease in the saving rate will...
Just need the answers please answer in 10 minutes A decrease in the saving rate will not affect which of the following variables in the long-run? a. The level of investment. b. Y/N c. The growth rate of output. d. K/N 1 points QUESTION 2 A reduction in the saving rate starting from a steady-state with more capital than the Golden Rule causes investment tom _______ in the transition to the new steady-state. a. first decrease then increase b....
13. If the Fed conducts Open Market Purchase, then: a. price of bonds increase, interest rates decrease and money supply...
13. If the Fed conducts Open Market Purchase, then: a. price of bonds increase, interest rates decrease and money supply decreases. b. price of bonds decrease, interest rates increase and money supply decreases. c. price of bonds increase, interest rates decrease and money supply increases. d. price of bonds decrease, interest rates decrease and money supply increases.
hi can you plzz answer all the true and false question in detail 9. A decrease in a wage taxes causes the opportu...
hi can you plzz answer all the true and false question in
detail
9. A decrease in a wage taxes causes the opportunity cost of leisure to increase. a. True b. False 10 In the typical leisure/consumption model, in the price of the composite consumption good. a. True increase in the wage is equivalent to a decrease an b. False 11. An increase in the interest rate is an increase in the opportunity cost of consuming in the future. a....
16. to the wealth effect, an increase in the price level causes ease in real wealth and more purchases b. An incr C. A decrease d. rease in real wealth and fewer purchases se in real wealth and fewer purchases A decrease in r price level increase tends to reduce net exports, thereby reducing the amount of real goods a. The b. The international banner effect C. rvices purchased in the U.S. Economists refer to this phenomenon as international wealth...
- Question 1 (5 marks) I. Suppose money demand (on the horizontal axis) is plotted against the nominal interest rate on the vertical axis). This money demand curve will shift to the right when which of the following occurs? a. an increase in income. b. a reduction in the interest rate. c. an increase in the money supply. d. a decrease in the money supply. II. At the current interest rate, suppose the supply of money is less than the...
t t Question 1 (5 marks) I. Suppose money demand (on the horizontal axis) is plotted against the nominal interest rate on the vertical axis). This money demand curve will shift to the right when which of the following occurs? a. an increase in income. b. a reduction in the interest rate. c. an increase in the money supply. d. a decrease in the money supply. II. At the current interest rate, suppose the supply of money is less than...
Question 1 (5 marks) I. Suppose money demand (on the horizontal axis) is plotted against the nominal interest rate (on the vertical axis). This money demand curve will shift to the right when which of the following occurs? a. an increase in income. b. a reduction in the interest rate. c. an increase in the money supply. d. a decrease in the money supply. II. At the current interest rate, suppose the supply of money is less than the demand...
hi can you plzz answer all the true and false question in
detail
9. A decrease in a wage taxes causes the opportunity cost of leisure to increase. a. True b. False 10 In the typical leisure/consumption model, in the price of the composite consumption good. a. True increase in the wage is equivalent to a decrease an b. False 11. An increase in the interest rate is an increase in the opportunity cost of consuming in the future. a....
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