If Government Saving Is Negative (That Is, If Government Is

question 128

Multiple Choice

If government saving is negative (that is, if government is running a budget deficit) , crowding out might occur. Crowding out leads to all of the following EXCEPT

• A) a decreased quantity of investment.
• B) a smaller capital stock in the future.
• C) decreased private saving.
• D) a higher real interest rate.

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Definitions:

Large Chains

Corporations or enterprises that operate multiple retail or service outlets across different locations, often nationwide or globally.

Small Business Owners

Individuals who own and operate businesses that are smaller in scale in terms of revenue, employees, and operations.

Wider Selection

A broader array of choices or options available in a specific context, such as products, services, or goods.

Price Inelastic

Describing a situation where the demand for a product does not significantly change with a change in the product's price.