The Crowding-Out Effect Arises When

question 92

Multiple Choice

The crowding-out effect arises when:

• A)government borrows in the money market, thus increasing interest rates and net investment spending in the economy.
• B)government borrows in the money market, thus increasing interest rates and decreasing net investment spending.
• C)the progressivity of the tax system increases, thus decreasing interest rates and increasing net investment spending.
• D)the progressivity of the tax system decreases, thus decreasing interest rates and net investment spending.

---

Definitions:

ECG Paper

Specialized graph paper used for printing electrocardiogram results, featuring grids that assist in the measurement and analysis of heart rhythms.

Impulse Movement

The sudden, involuntary urge to perform a physical action or movement.

Precordial Electrode

An electrode placed on the chest near the heart for the purpose of recording the heart's electrical activity.

Intercostal Space

The anatomical space between two ribs, which contains muscles, nerves, and blood vessels.