The Term "Crowding Out" Refers to the Phenomenon That Occurs

question 158

Multiple Choice

The term "crowding out" refers to the phenomenon that occurs when increased government
Spending

• A)raises the price level and reduces consumption.
• B)leads to interest rates which reduces private investments.
• C)leads to higher bond prices which decreases the demand for Treasury bonds.
• D)leads to increased budget deficits that ultimately warrant increases in income taxes.

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Definitions:

Heterozygous

A genetic condition where an individual has two different alleles of a gene.

Homozygous

A genetic condition where an individual has two identical alleles for a particular gene.

Gene

A unit of heredity that is transferred from a parent to offspring and is held to determine some characteristic of the offspring.