Author Question: Crowding out occurs when the federal government: a. raises taxes to finance a budget deficit. b. ... (Read 85 times)

Yi-Chen · **on:** Jun 30, 2018

Crowding out occurs when the federal government:
a. raises taxes to finance a budget deficit.
b. refinances maturing U.S. Treasury bonds.
c. borrows by selling bonds to finance a deficit.
d. uses a budget surplus to pay off part of the national debt.

Question 2

If the exchange rate between the yen and the dollar changes from 100 yen = 1 to 110 yen = 1, then:
a. the dollar has depreciated in value.
b. U.S.-made goods will become less expensive to Japanese citizens.
c. the dollar has appreciated in value.
d. Japanese-made goods will become more expensive to U.S. citizens.
e. there will be an increase in the demand for dollars in the foreign exchange market.