In the Short Run, Crowding Out Could Be Avoided If

question 131

Multiple Choice

In the short run, crowding out could be avoided if foreigners:

• A)sold the U.S. debt at a higher interest rate.
• B)sold the U.S. debt at the existing interest rate.
• C)bought the U.S. debt at a higher interest rate.
• D)bought the U.S. debt at the existing interest rate.

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Definitions:

Received

Refers to the act of obtaining or taking possession of something, often used in financial transactions.

Graduation

The process of receiving or conferring an academic degree or the ceremony that is sometimes associated, where students become graduates.

Invest

The act of allocating resources, usually money, in the expectation of generating an income or profit.

Promise

A declaration or assurance that one will do a particular thing or that guarantees that a particular thing will happen.