As Discussed in the Case in Point on the Degree

question 69

Multiple Choice

As discussed in the Case in Point on the degree of crowding out of Canadian private investment as a result of government expenditures from 1961-2000, Professor Baotai Wang concluded that

• A) all types of government spending-spending on health and education, on infrastructure and capital, on defense, on debt services, and on government and social services-lead to crowding out.
• B) government expenditures that increased human capital, such as spending on health and education, are more likely to lead to crowding out than other types of government expenditures.
• C) crowding out depends on the nature of spending done by the government.
• D) government expenditures, on infrastructure and capital are more likely to lead to crowding in because they expand a nation's capital stock.

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Definitions:

Accounts Payable

A current liability account that represents amounts owed by a business to creditors for purchases or services received.

Office Supplies

Items such as pens, paper, and other materials used for daily operations in an office setting.

Accounts Receivable

Debts owed by customers to a business for goods or services already provided but unpaid.

Accounts Payable

Liabilities of a company or individual that are due to creditors within a short period of time, typically for purchases of goods or services.