Crowding Out Is Associated With

question 112

Multiple Choice

Crowding out is associated with:

• A)a reduction in business investment resulting from an increase in government borrowing and higher interest rates.
• B)an increase in business investment resulting from an increase in government borrowing and higher interest rates.
• C)an increase in private savings caused by higher future tax liabilities when government increases borrowing.
• D)a decrease in government spending caused by a shortage of available credit.

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Definitions:

Magma

The hot fluid or semi-fluid material beneath the Earth's crust from which lava and other igneous rock is formed by cooling.

Large Crystals

Mineral crystals that have grown to a visibly significant size, often indicating slow cooling from a molten state.

Glassy Texture

The characteristic appearance of certain rocks and minerals that exhibit a glass-like, smooth, and shiny surface, often resulting from rapid cooling of molten material.

Volcanic Ash

Fine particles of pulverized rock ejected from a volcano during an eruption, can cause damage to aircraft and affect climate.