An Increase in the Budget Deficit Increasing the Level of Investment

question 42

Multiple Choice

An increase in the budget deficit increasing the level of investment is known as:

• A) the crowding out of investment.
• B) the crowding out of budget deficit.
• C) the crowding in of budget deficit.
• D) the crowding out of output.
• E) the crowding in of investment.

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Definitions:

Magmas

Molten rock material beneath or within the Earth's crust, from which igneous rock is formed through cooling and solidification.

Mid-ocean Ridges

Underwater mountain ranges formed by plate tectonics, where new oceanic crust is created through volcanic activity along divergent plate boundaries.

Ocean Plates

Large pieces of the Earth's crust that move over the partially molten outer layer, specifically those under the oceans.

Diverge

To move or extend in different directions from a common point, often used in reference to plate tectonics or paths.