Author Question: The crowding-out effect refers to: a. higher interest rates and reduced private spending that ... (Read 31 times)

dbose · **on:** Jun 30, 2018

The crowding-out effect refers to:
a. higher interest rates and reduced private spending that results from financing federal budget deficits.
b. higher future taxes accompanying budget deficits to reduce private consumption.
c. the inflation rate to rise when the unemployment rate is low.
d. increases in private savings to reduce interest rates and, thereby, crowd-out government

Question 2

The U.S. supply curve of dollars is upward-sloping because a:
a. higher number of yen per dollar means Japanese goods are cheaper in Japan.
b. higher number of yen per dollar means Japanese goods are cheaper in the U.S.
c. lower number of yen per dollar means Japanese goods are cheaper in the U.S.
d. none of these.