Author Question: Which of the following statements about crowding out is false? a. It is not caused by a budget ... (Read 59 times)

bcretired · **on:** Jun 30, 2018

Which of the following statements about crowding out is false?
a. It is not caused by a budget surplus.
b. It is caused by a budget deficit.
c. It can completely offset the multiplier.
d. It affects interest rates and not economic growth.

Question 2

Suppose a U.S.-made machine costs 500 and the exchange rate is 100 yen = 1 . A Japanese citizen purchasing this machine would pay:
a. 100 yen.
b. 500 yen.
c. 5,000 yen.
d. 10,000 yen.
e. 50,000 yen.