Which Statement Pertains to the Condition of Crowding Out

question 85

Multiple Choice

Which statement pertains to the condition of crowding out?

• A) Government cuts spending by $300 million,resulting in a decrease in consumption by $500 million.
• B) Government cuts taxes,resulting in an increase in investment spending by $270 million.
• C) Government increases spending by $300 million on new highway construction,resulting in an increase in consumption by $500 million.
• D) Government raises taxes by $300 million to finance new spending on highway construction,resulting in a decrease in investment spending by $270 million.

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Definitions:

Social Support

Assistance and comfort provided by others, which can be emotional, informational, or practical in nature.

New Skills

Abilities and competencies acquired through training or experience that are essential for performing new tasks or duties.

Situational Constraints

Are external factors or conditions that limit or restrict individuals' ability to achieve a task or an objective.

Sufficient Funds

Having enough money or resources available to cover expenses or investments required.