If the Crowding-Out Effect Is at Its Maximum Strength, It

question 173

Multiple Choice

If the crowding-out effect is at its maximum strength, it follows that an increase in government spending will

• A)cause aggregate demand and GDP to increase.
• B)cause aggregate demand and GDP to decrease.
• C)not affect aggregate demand and GDP.
• D)not cause the budget deficit to increase.

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Definitions:

Information Technology (IT)

The use of computers, networks, and other electronic devices for storing, retrieving, transmitting, and manipulating data.

Adhocracy

An organizational structure that is flexible and adaptable, often characterized by a lack of formal hierarchy and the ability to respond quickly to changes.

Tasks

Specific duties or assignments that are part of a job or activity, often involving a sequence of steps to be completed.

Operations Technology

The collection of hardware, software, and processes used to produce goods or deliver services efficiently and effectively.