Crowding Out Refers to a Diminishment of the Output Gain

question 44

Multiple Choice

Crowding out refers to a diminishment of the output gain from fiscal stimulus due to

• A) a lower money supply.
• B) higher interest rates.
• C) higher price level.
• D) all of the above.

---

Definitions:

Debit

An accounting entry that increases an asset or expense account, or decreases a liability or equity account, on a company's balance sheet.

Credit

A bookkeeping record that raises either liabilities or equity or lowers an asset or expense.

Abbreviated

Refers to shortened or condensed forms of words, terms, or documents, often used to save space or time.

Revenue Accounts

Accounts used to record the income generated from a company's primary operations.