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The Crowding Out Effect of Government Borrowing Refers to a Decrease

question 52

Multiple Choice

The crowding out effect of government borrowing refers to a decrease in I. private consumption. II. private savings. III. investment.


Definitions:

Illusory Correlation

A cognitive bias wherein a relationship is perceived between two variables that are statistically uncorrelated or independent.

Genius

Exceptional intellectual or creative power or other natural ability.

Insanity

A legal term describing a person's inability to understand the nature of their actions, not a specific clinical diagnosis.

Speed of Response

The rate at which an individual or system reacts to a specific stimulus or situation.

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