8. Which of the following describes crowding out accurately? A) Government, businesses and consumers all borrow more money which creates more debt. B) The government borrows more money which leaves less money for businesses to borrow and spend. C) Banks reduce interest rates which causes government, businesses and consumers to borrow less. D) The government raises taxes and as a result consumers and businesses spend less. 9. An example of an automatic stabilizer is: A) Inheritance taxes B) Interest payments on the debt

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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8. Which of the following describes crowding out accurately?
A) Government, businesses and consumers all borrow more money which creates
more debt.
B) The government borrows more money which leaves less money for businesses to
borrow and spend.
C) Banks reduce interest rates which causes government, businesses and consumers to
borrow less.
D) The government raises taxes and as a result consumers and businesses spend less.
9. An example of an automatic stabilizer is:
A) Inheritance taxes
B) Interest payments on the debt
Transcribed Image Text:8. Which of the following describes crowding out accurately? A) Government, businesses and consumers all borrow more money which creates more debt. B) The government borrows more money which leaves less money for businesses to borrow and spend. C) Banks reduce interest rates which causes government, businesses and consumers to borrow less. D) The government raises taxes and as a result consumers and businesses spend less. 9. An example of an automatic stabilizer is: A) Inheritance taxes B) Interest payments on the debt
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