The ________ in output due to each additional unit of a factor of production is ________ when other factors are held constant.
A) increase; smaller B) decrease; larger C) increase; larger D) decrease; smaller
Question 2
Financing government expenditure through deficits rather than through taxes will lead to higher spending if
A) it results in crowding in.
B) it results in crowding out.
C) people are more aware of taxes than they are of deficits.
D) people are more aware of deficits than they are of taxes.
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