The Crowding-Out Effect Refers to

question 132

Multiple Choice

The crowding-out effect refers to

• A)government spending crowding out private spending.
• B)private saving crowding out government saving.
• C)a government deficit crowding out investment.
• D)private investment crowding out government saving.
• E)private saving crowding out net taxes.

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Definitions:

Adjusted Subsidiary Value

An evaluation metric that adjusts the value of a subsidiary’s assets and liabilities to their fair market value.

Investment Account

An account held at a financial institution into which individuals deposit funds for the purpose of buying securities and other investment assets.

New Shares

Additional shares of stock issued by a company to raise capital or in connection with a stock split.

Noncontrolling Interest

A minority stake in a company that is not enough to exert control over its operations, often less than 50% of the voting shares.