If Increases in Government Spending on Infrastructure Projects "Crowd Out

question 96

Multiple Choice

If increases in government spending on infrastructure projects "crowd out" private investment spending, this will lead to

• A) higher levels of real income and wages in the future.
• B) no effects on real income and wages in the future.
• C) lower levels of real income and wages in the future.
• D) higher levels of real income and lower levels of wages in the future.

---

Definitions:

General Partnership

A business arrangement where two or more individuals agree to share all assets, profits, financial, and legal liabilities of a jointly-owned business.

Legal Entities

Organizations that have legal rights and obligations, including the ability to enter into contracts and own assets.

Separate Accounting Entity

A fundamental accounting principle that treats a company's financial reports as distinct from those of its owners or other businesses.

Audit

A systematic examination of books, accounts, documents, and vouchers of an organization to ascertain how far the financial statements present a true and fair view.