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.

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Definitions:

Profit

The financial gain obtained when the revenue from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Costs Money

Costs money is a term indicating that something requires payment or expenditure to obtain or maintain.

Return on Impressions Model

A method used to evaluate the effectiveness of advertising by calculating the returns generated from every impression made on the target audience.

Opportunities to See

A metric used in advertising to estimate the number of chances an audience has to view an advertisement.