In a Study on the Degree of Crowding Out of Canadian

question 71

Multiple Choice

In a study on the degree of crowding out of Canadian private investment as a result of government expenditures from 1961-2000, Professor Baotai Wang concluded that

• A)all types of government spending-spending on health and education, on infrastructure and capital, on defense, on debt services, and on government and social services-lead to crowding out.
• B)government expenditures that increased human capital, such as spending on health and education, are more likely to lead to crowding out than other types of government expenditures.
• C)crowding out depends on the nature of spending done by the government.
• D)government expenditures, on infrastructure and capital are more likely to lead to crowding in because they expand a nation's capital stock.

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Definitions:

Categorisation Theory

A psychological theory that describes how individuals group objects, people, or events into categories based on common attributes or meanings.

Causal Language

Refers to the use of linguistic expressions that denote cause-and-effect relationships.

Geometric Figures

Shapes or forms that are defined in mathematics and geometry, such as circles, squares, and triangles.

Human Properties

Characteristics or attributes that are inherent or typically associated with humans, such as cognitive abilities or emotions.