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.

---

Definitions:

Withdrawn

Refers to the act of removing funds from an account or canceling a financial transaction or operation.

Salaries

Regular payments made to employees for their service during a set period, not depending on hours worked.

Partnership

A legitimate business setup where two or more individuals collaborate in managing the business and dividing its profits.

LLP

Stands for Limited Liability Partnership, a type of partnership where some or all partners have limited liabilities, blending elements of partnerships and corporations.