The Crowding Out Effect Refers to The_{--------------------}from_{--------------------}in the Government's Budget

question 7

Multiple Choice

The crowding out effect refers to the_{--------------------}from_{--------------------}in the government's budget deficit.

• A)decrease in investment; an increase
• B)increase in consumption; an increase
• C)decrease in employment; an increase
• D)decrease in consumption; an increase
• E)increase in investment; an increase

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Definitions:

Authority

The legitimized power or right to make decisions, direct others, and expect compliance within a specific realm.

Responsibility

An obligation or duty to perform or complete a task or role, usually with accountability for the outcome.

Hierarchy

A system or organization in which people or groups are ranked one above the other according to status or authority.

Organizational Subsystem

A division or unit within an organization that has its specific role and functions contributing to the overall objectives.