Which of the Following Is an Example of Crowding Out

question 54

Multiple Choice

Which of the following is an example of crowding out?

• A)An increase in government spending increases interest rates, causing investment to fall.
• B)A decrease in private savings increases interest rates, causing investment to fall.
• C)A decrease in the money supply increases interest rates, causing investment to fall.
• D)An increase in taxes increases interest rates, causing investment to fall.

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Definitions:

Zone Boundaries

Defined limits that separate different areas or regions, often used in geographic, environmental, or management contexts.

Pooled Standard Deviation

A method to estimate the overall standard deviation from several different samples or groups, assuming each group has the same variance.

Sample Means

The average values obtained from statistical samples drawn from a population.

Zone Boundaries

Predetermined limits in a chart or graph that separate different levels of data for analysis or categorization purposes.