The Term "Crowding Out" Refers to the Phenomenon That Occurs

question 31

Multiple Choice

The term "crowding out" refers to the phenomenon that occurs when increased government
Spending

• A) raises the price level and reduces consumption.
• B) leads to higher interest rates which reduces private investments.
• C) leads to higher bond prices which decreases the demand for Treasury bonds.
• D) leads to increased budget deficits that ultimately warrant increases in income taxes.

---

Definitions:

Diaphragm

A large, dome-shaped muscle located below the lungs that plays a critical role in breathing.

Ostomy

A surgical procedure to create an opening (stoma) in the body for the discharge of body wastes.

Sexual Activity

Engaging in any act that stimulates sexual desire, sexual pleasure, or sexual arousal between individuals.

Physical Attraction

The attraction between individuals based on physical appearance and bodily characteristics.