If a Federal Budget Deficit Causes Crowding Out,_____

question 138

Multiple Choice

If a federal budget deficit causes crowding out,_____.

• A)real GDP does not increase by as much as the government purchases of goods and services multiplier would predict because the marginal propensity to consume decreases
• B)real GDP does not increase by as much as the government purchases of goods and services multiplier would predict because investment decreases
• C)interest rates fall,reducing the burden of the debt
• D)firms become more willing to invest
• E)interest rates fall,so that decreases in investment and government purchases of goods and services exactly offset the expansionary effect of the deficit

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Definitions:

Cross-training

A strategy where employees are trained in multiple skills or job functions to increase versatility and flexibility within the workforce.

Improve Flexibility

Refers to the ability of a system or operation to adapt to changes or variations in conditions, demand, or the environment.

Total Production Streamlining

An approach aimed at enhancing manufacturing efficiency by systematically reducing waste and improving production processes.

Customer Demand

The quantity of a product or service that consumers are willing and able to purchase at various prices over a given period of time.