Use the Following to Answer Questions

question 266

Multiple Choice

Use the following to answer questions :
Figure: The Market for Loanable Funds III
-(Figure: The Market for Loanable Funds III) Look at the figure The Market for Loanable Funds III. If the government in a closed economy is running a budget balance of zero when it decides to increase defense spending by $200 billion and then finances the spending by selling bonds, the government will crowd out a maximum of _____ in private investment spending.

• A)$200 billion
• B)$100 billion
• C)$50 billion
• D)$10 billion

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Definitions:

Facies Change

A change in the characteristics of rock layers indicating a change in environment of deposition, such as from marine to terrestrial.

Aerial Distribution

The spatial spread or dispersion of a substance, organism, or feature through the atmosphere.

Unconformity

A discontinuity in sedimentary rock sequences indicating a period of erosion or non-deposition.

Numeric Ages

Ages or dates assigned to geologic events or materials in years, often determined through radiometric dating.