Complete Crowding Out Implies That as Government Increases Purchases by $1

question 97

Multiple Choice

Complete crowding out implies that as government increases purchases by $1,

• A) private spending decreases by $1.
• B) Real GDP remains unchanged.
• C) there is an equal offsetting decrease in one or more of the components of private expenditures.
• D) all of the above
• E) none of the above

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Definitions:

Host Countries

Nations that host businesses, organizations, or individuals from other countries, often relating to international firms or workers.

Unemployment

The condition in which a percentage of the population wants to work but is unable to find jobs.

Globalization Strategy

A plan of action adopted by a company to expand its operations and influence beyond its home country through trade, investment, and other business activities.