Crowding-Out Results from

question 162

Multiple Choice

Crowding-out results from

• A)an increase in the supply of money and a decrease in the velocity of money.
• B)a decrease in the supply of money and an increase in the velocity of money.
• C)the inverse relationship between the supply of money and nominal GDP.
• D)deficit financing that increases interest rates and reduces investment.

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Definitions:

Cumulative Effect

The total impact of a change in accounting principle or correction of an error reported in a single period's financial statements.

Change In Accounting Principle

An adjustment made to the accounting methods used by a company, often requiring retrospective application to prior period financial statements.

Net Income

The remaining earnings of a firm once subtracting every expense and tax from its total income.

Extraordinary Item

Events or transactions that are distinct from the ordinary activities of a company, which are unusual in nature and infrequent in occurrence.