Crowding Out Is a Decrease in Private Investment Caused By

question 150

Multiple Choice

Crowding out is a decrease in private investment caused by:

• A)a contractionary fiscal policy.
• B)an expansionary fiscal policy.
• C)a full-employment budget deficit.
• D)the political business cycle.

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Definitions:

Economy

The system of production, distribution, and consumption of goods and services within a society or geographical area.

Policy Analyst

A professional who evaluates and advises on the formulation of policies and strategies, often within governmental or organizational contexts.

Federal Government

The national government of a federation that holds the authority over the political entities such as states or provinces.

Societal Institution

An established organizational structure or system in society that governs the behavior and expectations of its members.