The Crowding-Out Effect May Be Dampened If the Investment-Demand Curve

question 173

True/False

The crowding-out effect may be dampened if the investment-demand curve is shifting to the right.

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Definitions:

The Soviet Union

A former federal socialist state in northern Eurasia that existed from 1922 to 1991, officially known as the Union of Soviet Socialist Republics (USSR).

China's Economic Growth

A phenomenon marked by rapid industrialization, significant increases in GDP, and lifting millions out of poverty, transforming the country into a major global economy.

Individual Initiative

The drive or motivation of an individual to undertake actions on their own accord, often leading to innovation or the starting of new ventures.

Price Mechanism

The process by which the forces of demand and supply determine the prices of goods and services and allocate resources in an economy.