Those Economists Who Argue That a Significant Amount of Crowding

question 30

Multiple Choice

Those economists who argue that a significant amount of crowding out exists believe that the impact of expansionary fiscal policy will be _________________ by the crowding out.Their reasoning is that if the government increases purchases,and finances that spending by borrowing money,spending in the private sector will _______________,leading ultimately to _____________ in aggregate demand.

• A) strengthened; fall; little or no change
• B) strengthened; rise; a significant rise
• C) weakened; fall; little or no change
• D) weakened; rise; a significant rise

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Definitions:

Newlands Reclamation Act

A 1902 U.S. law that funded irrigation projects for the arid lands of 20 states in the American West, aiming to encourage agriculture through water management.

Riparian Rights

Legal entitlements of landowners to access and use water from a river, stream, or other watercourse flowing adjacent to their land.

Conservation Movement

A social and political effort aimed at preserving, protecting, and restoring the natural environment from degradation and exploitation.

Forest Reserves

Public lands set aside to preserve forest ecosystems, protect watersheds, and support biodiversity conservation.