Which of the following statements about crowding out is false? ...

[bcretired]

Which of the following statements about crowding out is false?
 a. It is not caused by a budget surplus.
  b. It is caused by a budget deficit.
  c. It can completely offset the multiplier.
  d. It affects interest rates and not economic growth.

Question 2

Suppose a U.S.-made machine costs 500 and the exchange rate is 100 yen = 1 . A Japanese citizen purchasing this machine would pay:
 a. 100 yen.
  b. 500 yen.
  c. 5,000 yen.
  d. 10,000 yen.
  e. 50,000 yen.

[maaaaaaaaaa]

Answer to Question 1

d

Answer to Question 2

e

[bcretired]

Thanks for the timely response, appreciate it

[bitingbit]

Excellent