An Illustration of "Crowding Out" in Macroeconomics Is Best Provided

question 14

Multiple Choice

An illustration of "crowding out" in macroeconomics is best provided by:

• A)an increase in the money supply crowds out the issuance of privately held debt.
• B)a decrease in the money supply decreases nominal GDP.
• C)a decrease in government subsidies for low- cost housing causes an increase in private spending on housing.
• D)a fiscal expansion raises interest rates and thereby lowers private investment.
• E)an increase in tariffs causes a decrease in imports.

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Definitions:

Brain Tissue

Tissue found within the brain, composed of neurons and glial cells, which supports neural function and health.

Oxytocin

A hormone and neurotransmitter often associated with social bonding, sexual reproduction, childbirth, and the period after childbirth.

Nourishment

The food or other substances necessary for growth, health, and good condition.

Newborn

An infant who is within hours, days, or up to a few weeks from birth.