The Crowding-Out Effect Suggests That

question 10

Multiple Choice

The crowding-out effect suggests that

• A) increases in consumption are always at the expense of saving.
• B) increases in government spending will close a recessionary expenditure gap.
• C) increases in government spending may reduce private investment.
• D) high taxes reduce both consumption and saving.

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Definitions:

Barcode Readers

Electronic devices that can read and output printed barcodes to a computer.

Fat Client

A computer in a client-server architecture that performs the bulk of data processing operations itself, rather than relying on a server.

Thin Client

A computer that relies heavily on another system (its server) to perform its computational roles and applications, characterized by its minimal local storage and computational requirements.

Hardware

The physical components of a computer system, such as the CPU, hard drive, and RAM, necessary for the operation of software.