Crowding Out

question 85

Multiple Choice

Crowding out:

• A)increases the multiplier effect, so that an increase in government spending raises income by more.
• B)increases the multiplier effect, so that an increase in government spending raises income by less.
• C)decreases the multiplier effect, so that an increase in government spending raises income by more.
• D)decreases the multiplier effect, so that an increase in government spending raises income by less.

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Definitions:

Grinding Machine

A machine tool that uses an abrasive wheel as a cutting tool to shape or finish metals or other materials.

Existing Capacity

The maximum output that a facility can produce under normal working conditions within a given period.

Milling Machines

Mechanical tools or devices used for shaping and machining solid materials through cutting or grinding.

Least Profitable

The term least profitable refers to the product, service, or business segment that generates the smallest amount of profit relative to others.