Which One of the Following Might Offset a Crowding-Out Effect

question 209

Multiple Choice

Which one of the following might offset a crowding-out effect of financing a large public debt?

• A)a decline in net exports
• B)an increase in public investment
• C)a decrease in the money supply
• D)a decline in public investment

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Definitions:

Buying Back

The act of a company purchasing its own shares from the marketplace, which can increase the value of remaining shares by reducing the supply.

Property

Assets or possessions, either tangible or intangible, that are owned by individuals or entities, including real estate and personal property.

Fiduciary Duty

A legal obligation of one party to act in the best interest of another. The obligated party is typically someone entrusted with the care of money or property.

Breach of Contract

The violation or failure to perform any term of a contract without a legitimate legal excuse.