The Crowding-Out Effect Refers to the Possibility That an

question 57

Multiple Choice

The crowding-out effect refers to the possibility that an

• A) increase in the money supply will result in a decline in taxes.
• B) increase in consumption spending will crowd out government spending.
• C) increase in private savings will crowd out the taxable income of households.
• D) increase in government borrowing will result in higher interest rates, which will crowd out private investment and consumption.

---

Definitions:

Privacy

The right of individuals to keep their personal information secure and protected from unauthorized access.

Object

An item, thing, or entity that is tangible or can be identified.

Researching Cars Online

The process of using internet tools and websites to gather information, compare options, and read reviews about vehicles.

Showroom

A space used to display products or goods for sale, particularly in the context of vehicles, furniture, appliances, and fashion, allowing customers to view and examine items before purchasing.