Question

Crowding out is defined as a. government imposing high taxes on people with incomes greater than...

Crowding out is defined as

a. government imposing high taxes on people with incomes greater than $250,000 per year.

b. too many banks operating in a small financial area.

c. An increase in the private sector spending as a result an expansionary fiscal policy

d. A decrease in the private sector spending as a result an expansionary fiscal policy

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
22. The crowding out effect is zero if A) the LM-curve is horizontal B) the LM-curve...
22. The crowding out effect is zero if A) the LM-curve is horizontal B) the LM-curve is vertical C) the Fed conducts open market sales following fiscal expansion D) income is stimulated via a tax cut rather than an increase in government spending E) none of the above 23. Crowding out occurs when A) an increase in defense spending causes a decrease in consumption B) expansionary monetary policy fails to stimulate economic growth C) expansionary fiscal policy causes interest rates...
An expansionary fiscal policy is represented by: a-An increase in taxes b-A decrease in government spending...
An expansionary fiscal policy is represented by: a-An increase in taxes b-A decrease in government spending c-An increase in price level d-A decrease in real output
Question 91 pts Crowding out refers to how expansionary monetary policy causes problems by reducing private...
Question 91 pts Crowding out refers to how expansionary monetary policy causes problems by reducing private savings. refers to how government debt endangers the Social Security system. refers to how expansionary fiscal policy reduces private spending. refers to how excessive government taxes cause the Phillips curve. Flag this Question Question 101 pts The classical school was the dominant school of economic thought until the Great Depression. was the dominant school of economic thought after the Great Depression. believed that the...
The response of investment spending to an increase in the government budget deficit is called Select...
The response of investment spending to an increase in the government budget deficit is called Select one: a. crowding out. b. income minus net taxes. c. private dissaving. d. expansionary investment. How will an increase in the government budget surplus as a result of lower government spending (with no change in net taxes) affect private saving in the economy? Select one: a. Private saving will decrease by less than the amount of increase in the budget surplus. b. Private saving...
5. The result of a government crowding out the loanable funds market is: a. A decrease...
5. The result of a government crowding out the loanable funds market is: a. A decrease in the real interest rate, crowding savers out of the loanable funds market. b. A decrease in the real interest rate, crowding borrowers out of the loanable funds market. c. Increased government borrowing increases loanable funds, increases the real interest rate, and thus crowds private borrowers out of the loanable funds market. d. Increased government borrowing reduces loanable funds, increases the real interest rate...
1.If the MPC is equal to 0.9 and investment spending increases by $50 billion what is...
1.If the MPC is equal to 0.9 and investment spending increases by $50 billion what is the result a.GDP increases $450M GDP increases $ 50M GDP increases $500M GDP decreases $450M 2.Rising inventories usually indicate: A.an economy that grows unexpectedly. B.an economy that slows unexpectedly C.an unexpected spurt in sales. D.an inflationary cycle. 3.Lowering taxes and increasing spending will likely A.Increase Deficits and the National Debt B.Decrease Deficits and the National Debt C.Have no impact on Deficits or the National...
2) A spike in “All Other Outlays” of the federal government in 2009 was due to:...
2) A spike in “All Other Outlays” of the federal government in 2009 was due to: a) an increase in the financial aid given to Greece earlier that year. b) an increase in the expenditures on Social Security and Medicare. c) the fiscal stimulus package passed earlier that year. d) a sudden increase in military expenditure as a result of the war in Iraq. e) an increase in the national debt earlier that year. 3) In 2016, welfare spending accounted...
The crowding out effect is zero if Select one: a. the LM-curve is vertical b. the...
The crowding out effect is zero if Select one: a. the LM-curve is vertical b. the central bank conducts open market sales following fiscal expansion c. income is stimulated via a tax cut rather than an increase in government spending d. the central bank conducts open market purchases following fiscal expansion e. the LM-curve is horizontal An asset (other than money) is considered to be more liquid if Select one: a. it can be quickly and cheaply transferred into money...
1. Which of the following will not occur in response to a decrease in the cash...
1. Which of the following will not occur in response to a decrease in the cash rate target set by the RBA (all else constant). Group of answer choices A, The Australian dollar will depreciate. B,Investment spending will increase. C, Government spending will increase. D, Interest rates across the economy will tend to decrease. 2. In a fractional reserve banking system, assuming away various complexities such as taxes, imports, and cash savings, the simple deposit multiplier can be used to...
Governments to get the economy out of recession or cool the economy down when the economy...
Governments to get the economy out of recession or cool the economy down when the economy is overheating often use fiscal policy.   1. What is fiscal policy?   2. How can it be used to get the economy out of recession? 3. How can it be used to get the economy out of the situation where the economy is in an expansionary period where we exceed long run potential?   4. Do both situations result on different impacts on inflation? Why or...