Author Question: According to the crowding-out effect, a budget deficit will lead to: a. reduced investment spending ... (Read 112 times)

rosent76

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According to the crowding-out effect, a budget deficit will lead to:
 a. reduced investment spending and a reduction in long-term economic growth.
  b. reduced investment spending and an increase in long-term economic growth.
  c. increased investment spending and a reduction in long-term economic growth.
  d. increased investment spending and an increase in long-term economic growth.

Question 2

Assume that at the current market price of 4 per unit of a good, you are willing and able to buy 20 units. Last year at a price of 4 per unit, you would have purchased 30 units. What is most likely to have happened over the last year?
 a. Demand has increased
  b. Demand has decreased
  c. Supply has increased
  d. Supply has decreased
  e. Quantity supplied has decreased



chem1s3

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Answer to Question 1

a

Answer to Question 2

b



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