Crowding Out Is Associated With

question 112

Multiple Choice

Crowding out is associated with:

• A)a reduction in business investment resulting from an increase in government borrowing and higher interest rates.
• B)an increase in business investment resulting from an increase in government borrowing and higher interest rates.
• C)an increase in private savings caused by higher future tax liabilities when government increases borrowing.
• D)a decrease in government spending caused by a shortage of available credit.

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Definitions:

Negotiable Instruments

Financial documents that guarantee the payment of a specific amount of money, either on demand or at a set time, and are transferable from one party to another.

Article 3

Typically refers to a specific section within a legal document or law that outlines certain provisions or regulations. Without more context, it's broad, but in the U.S. Constitution, it establishes the Judicial Branch.

Draft

To compose or prepare a preliminary version of a document, plan, or proposal for discussion or review.

Fixed Amount

A specified sum of money that does not vary or change under certain conditions or over a certain period of time.