Macroeconomics Crowding Out

Macroeconomics Crowding Out

12th Grade

25 Qs

quiz-placeholder

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Macroeconomics Crowding Out

Macroeconomics Crowding Out

Assessment

Quiz

Social Studies

12th Grade

Hard

Created by

John Robinson

FREE Resource

25 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

What is crowding out?

An decrease in consumption due to higher interest rates from expansionary fiscal policy.

A decrease to net exports due to higher interest rates from expansionary fiscal policy.

A decrease to investment due to higher interest rates from expansionary fiscal policy.

2.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

What can the Federal Reserve due to help prevent crowding out?

Increase reserve ratios.

Decrease personal income taxes.

Selling government securities to banks.

Lower the discount rate

3.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

Crowding out has what effect on the SRAS and AD demand model?

Shifts aggregate demand to the right.

Shifts aggregate demand to the left.

Shifts short run aggregate supply to the right.

Shifts short run aggregate supply to the left.

4.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

If the federal government has a budget deficit and enacts expansionary fiscal policy, then

the demand for loans shifts to the left.

the demand for loans shifts to the right.

the supply of loanable funds shifts to the right.

the supply of loanable funds shifts to the left.

5.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

It is the study of the nations economy as a whole.

Microeconomics

National economy

National output

Macroeconomics

6.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

Government deficit spending increases, interest rates, investment decreases

discount rate

opportunity cost

crowding out

budget deficit

7.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

What is the crowding out effect in macroeconomics?

A reduction in private investment due to increased government borrowing.

An increase in private investment due to decreased government borrowing.

A reduction in government spending due to increased private investment.

An increase in government spending due to decreased private investment.

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