Author Question: Assume that fewer businesses offer new bonds to raise investment funds when government borrowing ... (Read 253 times)

tfester · **on:** Jun 30, 2018

Assume that fewer businesses offer new bonds to raise investment funds when government borrowing increases interest rates. This would be an example of:
a. Ricardian equivalence.
b. overestimating the tax multiplier.
c. crowding out.
d. increased consumption.
e. the balanced-budget multiplier.

Question 2

Which of the following would shift the supply curve for gasoline to the right?
a. an increase in the demand for gasoline.
b. an increase in the price of gasoline.
c. an increase in the number of producers of gasoline.
d. an increase in the price of oil, an input into the production of gasoline.