The Lorenz curve represents the distribution of income. a. True ...

[FButt]

The Lorenz curve represents the distribution of income.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

If a federal budget deficit causes crowding out, _____.
 a. real GDP does not increase by as much as the government purchases of goods and services multiplier would predict because the marginal propensity to consume decreases
  b. real GDP does not increase by as much as the government purchases of goods and services multiplier would predict because investment decreases
  c. interest rates fall, reducing the burden of the debt
 d. firms become more willing to invest
 e. interest rates fall, so that decreases in investment and government purchases of goods and services exactly offset the expansionary effect of the deficit

[bassamabas]

Answer to Question 1

True

Answer to Question 2

b

[FButt]

TYSM

[irishcancer18]

Excellent