The Crowding-Out Effect Can Drive Up Interest Rates, Which _____

question 258

Multiple Choice

The crowding-out effect can drive up interest rates, which _____ consumer spending on durable goods and _____ business investment.

• A) reduces; increases
• B) reduces; reduces
• C) increases; reduces
• D) increases; increases

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Definitions:

Seize The Day

A phrase encouraging individuals to make the most of the present moment without concern for the future, often associated with the Latin term "carpe diem."

Defense Mechanism

Unconscious psychological strategies employed to protect a person from anxiety-arising thoughts or feelings.

Subception

A psychological process by which an individual responds to stimuli without consciously perceiving them.

Self-Actualization

A state of personal growth in which people fulfill their true potential.