the crowding-out model suggested that persistent, large government budget deficits are most likely to be associated with:
a. a decrease in private spending
b. an increase in net export
c. a decrease in the demand for loanable funds
d. a decrease in the real rate of interest
about the crowding-out model
2007-03-12 6:14 am
回答 (2)
2007-03-12 6:51 am
✔ 最佳答案
answer is a. It is because when government spends too much, private sector has no opportunity to spend. That is why it is called crowding out.
2007-03-13 2:16 am
a
It is because the amount of resources in the economy is fixed, if the government spent more $ and it means using more resources in the society. The Private Sector(I) will have less resources to use=using less $.
It is because the amount of resources in the economy is fixed, if the government spent more $ and it means using more resources in the society. The Private Sector(I) will have less resources to use=using less $.
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