This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Government debt crowds out private investment because A) the government and private firms compete ... (Read 93 times)

lunatika

  • Hero Member
  • *****
  • Posts: 548
on: Jun 30, 2018
Government debt crowds out private investment because
 
  A) the government and private firms compete in the same market for savings.
  B) private firms stop borrowing money when the government enters the market.
  C) the government's increased demand for loans decreases interest rates.
  D) the government can order the public to buy bonds.

Question 2

In the above figure, suppose the economy is at a short-run equilibrium at point B and the interest rate is r2. Which of the following policy options for the Fed will help solve the short-run situation?
 
  A) open market sale of government securities
  B) lowering the required reserve ratio
  C) lowering the differential between the discount rate and the federal funds rate
  D) open market purchase of government securities


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

okolip

  • Sr. Member
  • ****
  • Posts: 362
Reply #1 on: Jun 30, 2018
Answer to Question 1

A

Answer to Question 2

A


lunatika

  • Member
  • Posts: 548
Reply 2 on: Jun 30, 2018
Thanks for the timely response, appreciate it

Chelseyj.hasty

  • Member
  • Posts: 319
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

According to the American College of Allergy, Asthma & Immunology, more than 50 million Americans have some kind of food allergy. Food allergies affect between 4 and 6% of children, and 4% of adults, according to the CDC. The most common food allergies include shellfish, peanuts, walnuts, fish, eggs, milk, and soy.

Did you know?

Chronic necrotizing aspergillosis has a slowly progressive process that, unlike invasive aspergillosis, does not spread to other organ systems or the blood vessels. It most often affects middle-aged and elderly individuals, spreading to surrounding tissue in the lungs. The disease often does not respond to conventionally successful treatments, and requires individualized therapies in order to keep it from becoming life-threatening.

Did you know?

Green tea is able to stop the scent of garlic or onion from causing bad breath.

Did you know?

There are more nerve cells in one human brain than there are stars in the Milky Way.

Did you know?

There are actually 60 minerals, 16 vitamins, 12 essential amino acids, and three essential fatty acids that your body needs every day.

Some of the fastest growing religions in America are non-Judeo-Christian religions. This photograph Some of the fastest growing religions in America are non-Judeo-Christian religions. This photograph
Charles Darwin may be dead and gone but a recent write-in campaign has pitted him against Republican Charles Darwin may be dead and gone but a recent write-in campaign has pitted him against Republican
This graphic illustrates the original systems model of politics advanced by David Easton. Politics This graphic illustrates the original systems model of politics advanced by David Easton. Politics
Steel-toed shoes are a worthwhile investment to help prevent foot injury due to falling objects. ... Steel-toed shoes are a worthwhile investment to help prevent foot injury due to falling objects. ...
Private Practice Massage Therapy Business Plan Cont Private Practice Massage Therapy Business Plan Cont
Presidential success under unified and divided government, from Eisenhower to trump Presidential success under unified and divided government, from Eisenhower to trump
Video: Ventilation - phases and driving forces

For a complete list of videos, visit our video library