This topic contains a solution. Click here to go to the answer

Author Question: According to the crowding-out effect, if the government runs a budget deficit of 100 billion, what ... (Read 157 times)

londonang

  • Hero Member
  • *****
  • Posts: 540
According to the crowding-out effect, if the government runs a budget deficit of 100 billion, what is the change in the equilibrium quantity of investment?
 
  What will be an ideal response?

Question 2

Kyle and Stan are playing Odds or Evens, where Kyle is designated as the odd player and Stan is designated as the even player. They decide to play the game 10 times. The mixed-strategy equilibrium in this zero-sum game occurs when
 
  A) each player plays a pure strategy.
  B) one player plays a pure strategy and the other plays a mixed strategy.
  C) both players play their ideal mixtures.
  D) There is never an equilibrium in a zero-sum game.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

kiamars2010

  • Sr. Member
  • ****
  • Posts: 341
Answer to Question 1

Investment decreases. The government budget deficit increases the demand for loanable funds and, as a result, the real interest rate rises. The increase in the real interest rate decreases the quantity of investment. However, the decrease in investment is less than 100 billion because the higher real interest rate also increases the quantity of private saving.

Answer to Question 2

C




londonang

  • Member
  • Posts: 540
Reply 2 on: Jun 29, 2018
Excellent


AngeliqueG

  • Member
  • Posts: 343
Reply 3 on: Yesterday
Wow, this really help

 

Did you know?

The training of an anesthesiologist typically requires four years of college, 4 years of medical school, 1 year of internship, and 3 years of residency.

Did you know?

Always store hazardous household chemicals in their original containers out of reach of children. These include bleach, paint, strippers and products containing turpentine, garden chemicals, oven cleaners, fondue fuels, nail polish, and nail polish remover.

Did you know?

Nearly all drugs pass into human breast milk. How often a drug is taken influences the amount of drug that will pass into the milk. Medications taken 30 to 60 minutes before breastfeeding are likely to be at peak blood levels when the baby is nursing.

Did you know?

There are more sensory neurons in the tongue than in any other part of the body.

Did you know?

Blood is approximately twice as thick as water because of the cells and other components found in it.

For a complete list of videos, visit our video library