Crowding Out Refers to

question 3

Multiple Choice

Crowding out refers to

• A) increases in consumption, investment, or net exports caused by an increase in government purchases.
• B) decreases in consumption, investment, or net exports caused by an increase in government purchases.
• C) reductions in tax revenues associated with increases in tax rates.
• D) increases in tax revenues associated with increases in tax rates.

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Definitions:

Salivate

The secretion of saliva from the salivary glands in the mouth, often triggered by the sight, smell, or thought of food.

Phone Ringing

The sound made by a telephone to alert the recipient of an incoming call.

Operant Conditioning

A method of learning that occurs through rewards and punishments for behavior, emphasizing the influence of consequences on behavior.

Reinforcement

In behavioral psychology, a consequence that strengthens an organism's future behavior whenever that behavior is preceded by a specific antecedent stimulus.