The idea the government spending causes a reduction in private investment is called ?

Related Mcqs:

Which one of the following is not true ?

A. The difference between the price at which commercial bank sells an asset to the central bank and the price it agrees to buy it back can be expressed as an annualized percentage of the selling price and this is called the refinancing rate B. Commercial banks may borrow from and lend to each other … Which one of the following is not true ?Read More...

The interest rate ?

A. is determined in the goods market and influences the level of planned investment and thus the money market B. is determined in the money market and influences the level of planned investment and thus the goods market C. is determined in the goods market and has no influences on the money market D. is … The interest rate ?Read More...

Bance Solida has, in the past, always operated with a reserve ratio of 25 percent. It has now been taken over by Gung-Ho Bank Which operates with a reserve ration of 12½ percent, Assuming that Banca Solida adopts the business practices of its new owner, What will be the effect on money supply in the country in which Banca Solida operates ?

A. Money supply will increase because Banca Solida will increase its loans B. The effect on money supply cannot be determined from the information given C. Money supply will decrease because the loans will have to be repaid D. Money supply will be unchanged because the central bank has made no policy changes...

The demand for money represents the idea that there is ?

A. a positive relationship between the interest rate and the quantity of money demanded B. a negative relationship between the price level and the quantity of money demanded C. a negative relationship between the level of aggregate output and the quantity of money demanded D. a negative relationship between the interest rate and the quantity … The demand for money represents the idea that there is ?Read More...

When interest rate rise, other things equal, we can expect the quantity of real money holding to ?

A. fall B. increase C. not change D. None of these...