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.

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Definitions:

Supervisor Sets

Supervisor sets refer to the specific guidelines or expectations set by supervisors for their subordinates to follow in an organizational context.

Employee's Abilities

Refers to the skills, knowledge, and competencies that an individual possesses, which enable them to perform tasks effectively in a workplace.

Valence

In the field of motivation, valence refers to the emotional significance attached to something, determining how desirable or undesirable it is.

Expectancy Theory

A motivational theory suggesting that an individual's motivation is influenced by their expectation of achieving a desired outcome and the value they place on that outcome.