Which of the Following Best Explains What Is Meant by the Term

question 42

Multiple Choice

Which of the following best explains what is meant by the term crowding out?

• A)An increase in government purchases causes interest rates to rise and results in a decline in investment expenditures.
• B)An increase in government purchases causes interest rates to fall and results in a decline in investment expenditures.
• C)An increase in investment causes interest rates to rise and results in a drop in government purchases.
• D)Increases in consumption expenditures cause interest rates to rise and result in a decline in investment expenditures.
• E)An increase in consumption expenditures causes interest rates to rise and results in a decline in government purchases.

---

Definitions:

Freud

Sigmund Freud was an Austrian neurologist and the founder of psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Obsessive-compulsive Disorders

Mental illnesses marked by an individual's engagement in repetitive thoughts and behaviors that are performed to alleviate anxiety or distress.

Anal Development

In psychoanalytic theory, a stage of early child development centered on the control of bowel movements, which can influence personality traits.

Compulsive Behaviors

Actions repeatedly performed by an individual, driven by an uncontrollable urge, often as a response to obsessive thoughts, leading to distress or impairment in functioning.