The Crowding-Out Effect Is Likely to Be the Strongest During

question 85

Multiple Choice

The crowding-out effect is likely to be the strongest during periods of

• A)recession.
• B)large budget surpluses.
• C)high employment.
• D)expanding money supply.

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Definitions:

Account

An account is a record summarizing all the transactions pertaining to a single item in the accounting equation.

Payment

The transfer of money, goods, or services from one party to another in exchange for something of value, often fulfilling a contractual obligation or debt.

Interest Rates

The expense associated with acquiring a loan, usually represented as a proportion of the sum lent.

Better Off

A condition in which an individual or group's situation improves in terms of economic welfare, happiness, or other measures of well-being.