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Author Question: Which of the following is crowded out by higher interest rates that can be the result of ... (Read 44 times)

Awilson837

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on: Jun 29, 2018
Which of the following is crowded out by higher interest rates that can be the result of expansionary fiscal policy?
 
  A) net exports
  B) private investment
  C) consumption
  D) All of the above are crowded out by higher interest rates.

Question 2

Over the past decade, the demand for goods produced in China has brought a sustained increase in demand for China's exports that has out-stripped the growth of supply. As a result, China has experienced a _______.
 
  A. period of stable prices and sustained economic growth
  B. rising price level and demand-pull inflation
  C. rising price level and cost-push inflation
  D. rising price level and a falling real wage rate


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welcom1000

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Reply #1 on: Jun 29, 2018
Answer to Question 1

D

Answer to Question 2

B Aggregate demand has increased far more than aggregate supply, so the price level has risen and the economy has had a demand-pull inflation.


Awilson837

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Reply 2 on: Jun 29, 2018
YES! Correct, THANKS for helping me on my review

coreycathey

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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