Consider a closed economy without the government. If the GDP of ...

[j.rubin]

Consider a closed economy without the government. If the GDP of the economy is 25,000 and the savings rate in the economy is 25, the aggregate savings in the economy is:
 
  A) 8,000. B) 8,650. C) 6,250. D) 3,320.

Question 2

The crowding-out effect is
 
  A) the tendency of expansionary fiscal policy to cause an increase in planned investment but not in planned consumption in the U.S. private sector.
  B) the tendency of contractionary fiscal policy to cause an increase in planned investment but a decrease in planned consumption in the U.S. private sector.
  C) the tendency of expansionary fiscal policy to cause a decrease in planned investment or planned consumption in the U.S. private sector.
  D) the tendency of contractionary fiscal policy to cause an increase in planned investment or planned consumption in the U.S. private sector.

[olivia_paige29]

Answer to Question 1

C

Answer to Question 2

C

[j.rubin]

Excellent

[Joy Chen]

Gracias!