Question: I need help with these questions please Question 11 (1 point) The crowding-out effect suggests that: ( 1) tax increases are paid primarily out of

I need help with these questions please

I need help with these questions please Question 11 (1 point) The

Question 11 (1 point) The crowding-out effect suggests that: ( 1) tax increases are paid primarily out of saving and therefore are not an effective fiscal device. (2) government borrowing to finance the public debt increases the real interest rate and reduces private investment. ( 3) it is very difficult to have excessive aggregate spending in a capitalist economy. ( 4) consumer and investment spending always vary inversely. Question 12 (1 point) Tax increases and government spending cuts by state governments during recessions often reduce the expansionary impact of fiscal policy by the federal government. ( 1) True (2) False Question 1211

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!