When an Increase in Government Spending Leads to a Decrease

question 96

Multiple Choice

When an increase in government spending leads to a decrease in private spending it is called

• A) crowding out.
• B) a drop in the bucket.
• C) bad timing.
• D) None of the answers is correct.

---

Definitions:

Full Concentration

The state of being completely focused or absorbed in a task or activity, with all cognitive resources directed towards it.

Arbitration

A method of dispute resolution where a neutral third party, known as an arbitrator, makes a binding decision to resolve a disagreement between parties.

Voluntary

Actions or activities done by free will without any coercion or compulsion.

Arbitration

A method of resolving disputes outside the courts, where the parties to a dispute refer it to one or more persons (the arbitrators, arbiters, or arbitral tribunal), whose decision (the award) they agree to be bound by.