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:

Personal Information Protection and Electronic Documents Act

A Canadian federal law that sets out how private sector organizations can collect, use, and disclose personal information in the course of commercial business.

Equivalent Protection

The provision of safeguards or rights that are comparable in substance, but not necessarily identical in form or method.

Passing-off

A common law tort used to enforce unregistered trademark rights, involving misrepresentation leading to consumer confusion and potential damage to goodwill.

Injurious Falsehood

A false statement made by one party intending to damage the reputation or economic interests of another, often considered a tort.