"We Lose More by Letting the Company Fail Than by Having

question 37

Multiple Choice

"We lose more by letting the company fail than by having the government save it." This was most likely said by an economist who believes that

• A) crowding out is complete.
• B) bailouts are sometimes necessary.
• C) the tax multiplier is larger than the government spending multiplier.
• D) the AS curve is vertical.
• E) the AS curve is upward-sloping.