Author Question: Whenever there is a surplus at a particular price, the quantity sold at that price will equal: a. ... (Read 115 times)

ashley · **on:** Jun 30, 2018

Whenever there is a surplus at a particular price, the quantity sold at that price will equal:
a. the quantity demanded at that price.
b. the quantity supplied minus the quantity demanded.
c. the quantity supplied at that price.
d. (quantity demanded plus quantity supplied)/2.

Question 2

The crowding-out effect implies that:
a. increases in government purchases will lower interest rates and stimulate investment spending.
b. higher taxes reduce both consumption and saving.
c. fiscal policy effects on interest rates will be offset by monetary policy.
d. increases in government purchases increase income and the demand for loanable funds which will choke off some private spending.