If an Increase in the Federal Deficit Stimulates an Economy,_____

question 23

Multiple Choice

If an increase in the federal deficit stimulates an economy,_____.

• A)an expansionary gap exists in the economy
• B)the crowding in of private investment takes place
• C)the crowding out of private investment offsets crowding in of private investment
• D)the crowding out and crowding in of private investment cancels each other out
• E)interest rates increase significantly

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Definitions:

Leeward Side

The side of an object or geographic formation that is sheltered from the prevailing wind.

Mountain Range

A series of connected mountains, typically aligned in a linear pattern, formed by various geological processes like tectonic plate movement.

Formation

The process or result of forming something or the structure and arrangement of something.

Omnivores

Organisms that obtain their energy and nutrients from a diet made up of both plant and animal substances.