Crowding Out

question 306

Multiple Choice

Crowding out:

• A) refers to government spending crowding out imports.
• B) aids expansionary fiscal policy.
• C) cancels out expansionary fiscal policy.
• D) leads to higher interest rates.

---

Definitions:

Corporate Disclosure Requirements

Regulations mandating that corporations publicly disclose certain financial and business information to maintain transparency with shareholders and the public.

Sarbanes-Oxley Act

A law enacted in response to a number of major corporate and accounting scandals to protect shareholders and the general public from accounting errors and fraudulent practices in enterprises.

Securities And Exchange Commission

A U.S. government agency responsible for regulating the securities industry, enforcing federal securities laws, and overseeing the stock and options exchanges.

Due Diligence

A comprehensive appraisal or investigation of a business or person prior to signing a contract, or an act with a certain standard of care.