"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.

---

Definitions:

Nitrogenous Wastes

Metabolic waste compounds that contain nitrogen, commonly produced by the breakdown of proteins and nucleic acids in organisms.

Umbilical Cord

A flexible cord-like structure containing blood vessels, connecting the fetus to the placenta during pregnancy.

Allantois

An embryonic membrane in reptiles, birds, and mammals that is involved in respiration and excretion.

Fertilization

The process of a sperm cell joining with an ovum (egg cell) to form a zygote, initiating the development of a new organism.