When the demand for grapes decreases and the supply of grapes increases at the same time, we can predict that the:
a. price of grapes will fall.
b. price of grapes will rise.
c. quantity of grapes exchanged will fall.
d. quantity of grapes exchanged will rise.
Question 2
A larger crowding-out effect:
a. increases the magnitude of a given fiscal policy's effect on interest rates and increases the magnitude of its effects on investment.
b. increases the magnitude of a given fiscal policy's effect on interest rates and decreases the magnitude of its effects on investment.
c. decreases the magnitude of a given fiscal policy's effect on interest rates and increases the magnitude of its effects on investment.
d. decreases the magnitude of a given fiscal policy's effect on interest rates and decreases the magnitude of its effects on investment.
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