When Government Saving Is Negative

question 53

Multiple Choice

When government saving is negative,

• A)the real interest rate rises.
• B)the real interest rate falls.
• C)investment increases.
• D)the real interest rate falls if crowding-out occurs.
• E)the supply of loanable funds increases.

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Definitions:

Sherman Act

A foundational antitrust law in the United States that prohibits monopolies and other activities that restrict competition in the marketplace.

Vertical Restrictions

Constraints imposed in a supply chain that limit the way products or services can be sold or distributed, often to preserve competition.

Rule-Of-Reason

The Rule-Of-Reason is a legal doctrine used in antitrust law to determine if a business practice is anticompetitive, taking into account all circumstances and its actual impact on competition.

Sherman Act

A foundational antitrust law in the United States aimed at preventing monopolies and promoting competition among businesses.