The Crowding-Out Effect Recognizes That If the Government Sells Bonds

question 175

Multiple Choice

The crowding-out effect recognizes that if the government sells bonds to finance spending, it can cause interest rates to _____ investment.

• A) fall, thereby reducing
• B) fall, thereby stimulating
• C) rise, thereby reducing
• D) rise, thereby stimulating

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Definitions:

Proposition

A statement or assertion that expresses a judgment or opinion, capable of being true or false.

Begging the Question

A logical fallacy where the conclusion of an argument is assumed in the premise, often leading to a circular argument.

Premises

Statements or ideas that serve as the basis or starting point for further argument or reasoning within logical, philosophical, or rhetorical discourse.

Conclusion

The statement that logically follows from the premises in an argument.