The crowding-out effect suggests that government borrowing to finance the public debt increases the real interest rate and reduces private investment. it is very difficult to have excessive aggregate spending in a capitalist economy. tax increases are paid primarily out of saving and therefore are not an effective fiscal device. consumer and investment spending always vary inversely.

Which change is illustrated by the shift taking place on this graph? a decrease in supply an increase in supply o an increase in demand o a decrease in demand

In 1975, mcdonald’s introduced its egg mcmuffin breakfast sandwich, which remains popular and profitable today. this longevity illustrates the idea of:

Acompetitive market in healthcare would a. overprovide healthcare because the marginal social benefit of healthcare exceeds the marginal benefit perceived by consumers b. underprovide healthcare because it would eliminate medicare and medicaid c. underprovide healthcare because the marginal social benefit of healthcare exceeds the marginal benefit perceived by consumers d. overprovide healthcare because it would be similar to the approach used in canada