Question 1

When economists warn about the crowding-out effect, they are referring to:

Accepted Answer

A)   when prices set too low lead to large crowds.
B)   when a firm earns a high profit over the past month.
C)   when banks run out of money to lend.
D)   when government borrowing reduces private investment.E) A) and B)
F) None of the above

Question 2

A shift of the long-run aggregate supply curve to the right suggests which of the following?

Accepted Answer

A)   an increase in productivity
B)   an increase in tax revenue
C)   a decrease in the average standard of living
D)   a decrease in economic growthE) A) and B)
F) A) and C)

Question 3

The burden of a nation's debt falls if interest rates fall.

Accepted Answer

A) True 
 B)False

Question 4

Trying to annually balance the federal budget during a recession may worsen the economy.

Accepted Answer

A) True 
 B)False

Question 5

Which U.S. presidents reduced marginal tax rates to promote work and business risk taking?

Accepted Answer

A)   Obama and Reagan
B)   Kennedy and Clinton
C)   Reagan and Kennedy
D)   Clinton and ObamaE) None of the above
F) C) and D)

Exam 10: Fiscal Policy and Debt

The burden of a nation's debt falls if interest rates fall.

Correct Answer
verified

When economists warn about the crowding-out effect, they are referring to:

Correct Answer
verified

A shift of the long-run aggregate supply curve to the right suggests which of the following?

Correct Answer
verified

Which U.S. presidents reduced marginal tax rates to promote work and business risk taking?

Correct Answer
verified

Trying to annually balance the federal budget during a recession may worsen the economy.

Correct Answer
verified

Exam 10: Fiscal Policy and Debt

The burden of a nation's debt falls if interest rates fall.

Correct AnswerverifiedShow Answer

When economists warn about the crowding-out effect, they are referring to:

Correct AnswerverifiedShow Answer

A shift of the long-run aggregate supply curve to the right suggests which of the following?

Correct AnswerverifiedShow Answer

Which U.S. presidents reduced marginal tax rates to promote work and business risk taking?

Correct AnswerverifiedShow Answer

Trying to annually balance the federal budget during a recession may worsen the economy.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified