According to crowding out hypothesis

Assignment Help Business Economics
Reference no: EM13836929

According to crowding out hypothesis, an increase in ---- will lead to increase---- and later on a crowding out of (a decrease in)------

A. money supply, interest rate GDP

B. government expenditure, inflation, real GDP

C. government expenditure, interest rate, investment

D. money supply, price level, investment

Reference no: EM13836929

Questions Cloud

Differences between us and china economies : There are a lot of differences between US and China economies. Compared to the U.S. economy, the Chinese economy has which of the following? ----
Current spending and future entitlement obligations : Which of the following best describes the position of the U.S. budget, as of fiscal year 2010, when all current spending and future entitlement obligations are taken into account?
Cyclical budget balance : Cyclical budget balance of the US government explains what should be the budget situation over the expected business cycle of the US economy. Therefore, cyclical budget balance =
Time inconsistency is the problem of policy : Time inconsistency is the problem of policy makers having a strong bias towards------ priorities over the-------
According to crowding out hypothesis : According to crowding out hypothesis, an increase in ---- will lead to increase---- and later on a crowding out of (a decrease in)------
Multiplier value is equal : The study that estimates that in the United States the multiplier value is equal to 1.62, is carried out by----
Makes increase in real gdp via multiplier process : Increase in Government expenditure makes increase in real GDP via multiplier process. If the effective multiplier for fiscal policy is 2, how much change in government purchases would be required to close a 500 billion negative output gap, other thin..
Increase the effectiveness of fiscal stimulus : A situation in which the Fed holds interest rates constant (at a low level) in order to increase the effectiveness of fiscal stimulus is known as ___________.
Elements of fiscal policy that move the budget : Elements of fiscal policy that move the budget toward surplus as the economy expands and toward deficit as it contracts are called ________.

Reviews

Write a Review

Business Economics Questions & Answers

  Use the supply and demand for loan able funds model

Consider a closed economy. Use the supply and demand for loan able funds model to predict the effects of the following events on interest rates and investment.

  What effect should these expansionary policies

Bush lowered taxes in the 2001 recession and his tax cuts continue. Obama has increased government spending through his stimulus packages. What effect should these expansionary policies have on the AD and AS curves? How should they shift? What should..

  Temporary group of employees responsible for bringing

A temporary group of employees responsible for bringing about a particular change is a

  What is the price elasticity of demand

If the price of cheese is marked down during a sale by 20% and in response the quantity demanded (sales) increase from 30 packages to 45 packages what is the price elasticity of demand? Is demand elastic or inelastic?

  Government give in tax cut to eliminate this gap

Elucidate how much money should the government spend to eliminate this gap. Elucidate how much money should the government give in tax cut to eliminate this gap.

  A change in populationassume a one-time decrease in

a change in populationassume a one-time decrease in population possibly caused by an onset of disease or a sudden

  Healthcare market to be at an optimal level of output

In a world of completely selfish individuals, if we could measure each person's marginal value for his or her own medical care, what conditions must be met in order for the healthcare market to be at an optimal level of output?

  Given expected price level policies for reaching potential

Given the expected price level, policies for reaching potential GDP will work best if the funds provide.

  Role of the organization in ethical decision making

Compare the role of the individual and the role of the organization in ethical decision making. How can business promote an ethical climate - The organization role in ethical decision affects people who work for the organization and ultimately the ..

  What is the equilibrium price and quantity in the market

What is the equilibrium Price and Quantity in the market? Now suppose the government imposes a special tax on these computers. Describe what would happen in this market in terms of the supply and demand curve.

  Sticky-price theory-short-run aggregate-supply curve

Complete the statements about the following three theories for the upward slope of the short-run aggregate-supply curve.

  Calculate roys taxable income

Roy is a single person. He earned $75,000 last year. Among his expenditures last year were $10,000 on interest on his home mortgage, $2,500 payment on the principle of his home loan, $700 in charitable contributions, and $392 for food. And the person..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd