Question 131 / 1 pointIn most developed countries, the government plays a large role in society’s investment in human capital through _________________________.
a) the education systemb) direct spendingc) private sector R&Dd) tax incentives Question 140 / 1 pointA moderate increase in a budget deficit that leads to a _____________________ is not necessarily a cause for concern. Question 151 / 1 pointIn a market-oriented economy, private firms will undertake most of the _____________________________, and ________________ should seek to avoid a long series of large budget deficits that might crowd out such investment.
Question 161 / 1 pointA ____________________________ is one economic mechanism by which government borrowing can crowd out private investment. Question 171 / 1 pointWhen governments are borrowers in financial capital markets, which of the following is least likely to be a possible source of the funds from a macroeconomic point of view? a) central bank prints more moneyb) foreign financial investorsc) increase in household savingsd) decrease in borrowing by private firms Question 181 / 1 pointWhen a government records a budget surplus, the national savings and investment identity is written as:
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