The Crowding-Out Effect Occurs When an Expansionary Fiscal Policy Increases

question 205

True/False

The crowding-out effect occurs when an expansionary fiscal policy increases the interest rate, decreases investment spending, and weakens fiscal policy.

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Definitions:

Sender

The person or entity that initiates a message or communication to a receiver.

Message

A piece of communication that is sent from one person or entity to another, conveying information, feelings, or instructions.

Composes

To create or put together elements or components in a particular form or structure, such as writing music, authoring documents, or assembling pieces to form a whole.

High-context Cultures

Cultures in which communication relies heavily on the underlying context, implied messages, and non-verbal cues rather than on explicit verbal communication.