The Crowding Out Effect Refers to

question 5

Multiple Choice

The crowding out effect refers to

• A) the presence of the Ricardo-Barro effect.
• B) government investment crowding out private investment.
• C) how a cyclical budget deficit changes over the business cycle.
• D) the wealth effectʹs impact on the aggregate demand curve.

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Definitions:

Proportion

A subdivision, quota, or ratio analyzed in respect to its full size.

Unknown Quantity

An undetermined or unspecified value in mathematics that needs to be solved or identified.

Fraction Form

Fraction form is a way to represent numbers by showing how many parts of a whole are there, typically written with one number over another, separated by a line.

Proportion

A relationship between two quantities denoting their ratio.