In a Closed Economy, Crowding Out Occurs When an Increase

question 34

Multiple Choice

In a closed economy, crowding out occurs when an increase in government spending results in:

• A) a decrease in net exports.
• B) an increase in consumption spending.
• C) a decrease in investment spending.
• D) an increase in public saving.

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Definitions:

Learned Helplessness

A psychological condition where an individual expects failure due to previous experiences of inability to control outcomes, affecting motivation and behavior.

Contingency Blocking

A learning phenomenon where the association between a stimulus and a response is hindered by the presence of a more dominant or previously learned stimulus-response association.

Biofeedback

A technique that trains individuals to improve their health by controlling certain bodily processes that normally occur involuntarily, such as heart rate, blood pressure, muscle tension, and skin temperature.

Operant Conditioning Technique

A method of learning that employs rewards and punishments for behavior to cause a change in behavior.