Author Question: If the government has a budget deficit, crowding out might occur. Crowding out leads to all of the ... (Read 102 times)

Melani1276 · **on:** Jun 29, 2018

If the government has a budget deficit, crowding out might occur. Crowding out leads to all of the following EXCEPT

A) a higher real interest rate.
B) a decreased quantity of investment.
C) a smaller capital stock in the future.
D) decreased private saving.

Question 2

Which of the following statements is TRUE?

A) Real GDP fluctuates around potential GDP.
B) Potential GDP fluctuates around real GDP.
C) Potential GDP is the same as real GDP.
D) When all of the economy's resources are fully employed, the value of production is called real GDP.