Author Question: The tendency for higher government budget deficits to decrease investment is called the A) ... (Read 59 times)

acc299 · **on:** Jun 29, 2018

The tendency for higher government budget deficits to decrease investment is called the

A) crowding-out effect.
B) deficit effect.
C) Ricardo-Barro effect.
D) inflation effect.
E) wealth effect.

Question 2

The long-run Phillips curve is a

A) straight line with a 45 degree slope showing the long-run relationship between the inflation rate and the expected inflation rate.
B) vertical line that shows the relationship between inflation and unemployment when the economy is at full employment.
C) vertical line indicating a positive relationship between inflation and unemployment.
D) horizontal line indicating a positive relationship between inflation and unemployment.
E) horizontal line that shows the relationship between inflation and unemployment when the economy is at full employment.