Author Question: The Lorenz curve represents the distribution of income. a. True b. False Indicate whether the ... (Read 27 times)

FButt · **on:** Jun 30, 2018

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