Which Term Refers to the Reduction in Demand That Results

question 94

Multiple Choice

Which term refers to the reduction in demand that results when a fiscal expansion raises the interest rate?

• A) multiplier effect
• B) crowding-out effect
• C) accelerator effect
• D) catch-up effect

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Definitions:

Momentum Effect

The phenomenon where the movement (either upwards or downwards) of a stock price or market trend tends to continue for a period of time.

Reputational Capital

The value of a company or individual's reputation, built over time, which can affect stakeholders' decisions and perceptions, impacting financial and strategic outcomes.

Computer-Mediated

Describes communication or interactions that occur through the use of computers and other digital devices, facilitating exchanges between users across distances and platforms.

Virtual Reality

A simulated experience created with computer technology, which can mimic or create different environments for users.