Which of the Following Sequences Best Represents the Crowding-Out Effect $\uparrow \Rightarrow$

question 233

Multiple Choice

Which of the following sequences best represents the crowding-out effect?

• A)government purchases \(\uparrow \Rightarrow\) GDP\(\uparrow \Rightarrow\) supply of money \(\darr\Rightarrow\) equilibrium interest rate \(\uparrow \Rightarrow\) quantity of goods and services demanded \(\darr\)
• B)government purchases \(\darr\Rightarrow\) GDP \(\darr\Rightarrow\) demand for money \(\darr\Rightarrow\) equilibrium interest rate \(\darr\Rightarrow\) quantity of goods and services demanded \(\darr\)
• C)government purchases \(\uparrow \Rightarrow\) GDP \(\uparrow \Rightarrow\) demand for money \(\uparrow \Rightarrow\) equilibrium interest rate \(\uparrow \Rightarrow\) quantity of goods and services demanded \(\darr\)
• D)taxes \(\uparrow \Rightarrow\)GDP \(\darr\Rightarrow\) demand for money \(\darr\Rightarrow\) equilibrium interest rate \(\uparrow \Rightarrow\) quantity of goods and services demanded \(\darr\)

---

Definitions:

Superseded

Replaced or set aside by another authority or regulation, indicating that the former rule or law is no longer applicable or effective.

Boolean

A binary variable, having two possible values called "true" and "false."

Terms And Connectors

Search operators used in legal databases to refine and specify the relationship between search terms.

Natural Language

A language that has evolved naturally among humans for communication, as opposed to artificial or programming languages.