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:

Syllogism Valid

An argument form with two premises and a conclusion, valid if the conclusion logically follows from the premises.

Accounting Error

A mistake in the recording, categorization, or calculation of financial transactions.

Existential Import

The implication that at least one instance of the subject in a categorical proposition exists.

Coherent Argument

An argument where all the premises logically support the conclusion and are consistent with each other.