Which of the Following Is an Example of Crowding Out

question 124

Multiple Choice

Which of the following is an example of crowding out?

• A) A decrease in the rate of growth of the stock of money decreases GDP.
• B) A deficit causes an increase in interest rates, which causes a decrease in investment spending.
• C) An increase in tariffs causes a decrease in imports.
• D) A decrease in government housing subsidies causes an increase in private spending on housing.

---

Definitions:

Scapula

A bone that connects the humerus (upper arm bone) with the clavicle (collar bone) and is commonly known as the shoulder blade.

Clavicle

The collarbone, between the sternum and scapula.

Humerus

The humerus is the long bone in the upper arm that extends from the shoulder to the elbow, connecting with several muscles and joints.

Forearm Muscles

Groups of muscles in the lower arm that facilitate movement of the hand and wrist.