Author Question: Crowding out will be greater A) if the economy is in recession, rather than at full employment. ... (Read 97 times)

Awilson837 · **on:** Jun 29, 2018

Crowding out will be greater

A) if the economy is in recession, rather than at full employment.
B) the further equilibrium GDP is below potential GDP.
C) the less sensitive consumption spending is to changes in the interest rate.
D) the more sensitive investment spending is to changes in the interest rate.

Question 2

If the United States has a current account deficit and the capital account is zero, which of the following must be true?

A) The balance on the financial account must equal the balance on the current account.
B) Domestic public saving must be less than net foreign investment.
C) Net foreign investment must be negative as well.
D) Domestic private saving must be less than net foreign investment.