Crowding-Out Is the Notion That

question 167

Multiple Choice

Crowding-out is the notion that:

• A)since tax revenues vary directly with GDP, a rise in the level of GDP will increase the budget surplus and limit expansion.
• B)deficit financing will increase the demand for money, increase the interest rate, and reduce the level of investment spending in the economy.
• C)the full-employment budget is the best indicator of whether a budget deficit crowds out investment.
• D)the actual budget is the best indicator of whether a budget deficit crowds out saving.

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Definitions:

Behaviourism

A philosophy basing psychology on the study of observable and measurable behaviors rather than mental states.

Psyche

The human soul, mind, or spirit, encompassing conscious and unconscious aspects of personality.

Logos

A principle in classical rhetoric that stands for reasoned discourse or argument, often seen as a way to persuade through logic.

Structuralism

An approach in psychology that seeks to understand the structure of the mind by analyzing the elements of conscious experience.