Crowding Out Leads to All of the Following EXCEPT

question 8

Multiple Choice

Crowding out leads to all of the following EXCEPT

• A)a higher real interest rate.
• B)a decrease in investment.
• C)a smaller quantity of capital in the future.
• D)a decrease in private saving.
• E)crowding out leads to all of the above.

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Definitions:

Installation Cost

The expense associated with setting up or putting equipment, infrastructure, or software into operation.

Erosion Cost

Costs that occur when a new project or investment negatively affects the revenues or profits of existing projects or investments.

Class A Spa

An upscale facility offering premium health and beauty treatments, differentiated by service, amenities, or exclusivity criteria.

Present Value

The worth at present of a sum of money expected in the future or of ongoing cash payments, when discounted at a specific rate of return.