Crowding Out Occurs When Private Individuals and Firms Increase Investment

question 104

True/False

Crowding out occurs when private individuals and firms increase investment and consumption at the same time that the government increases borrowing.

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Definitions:

Systematic Change

A long-term strategy that changes the organization's culture and attitudes, and employees' values, with the goals of reducing costs and enhancing quality.

Time Horizon

The length of time over which an investment, project, or strategic decision is expected to unfold or achieve certain goals.

Psychological Contract

An unwritten commitment between employers and their employees that historically guaranteed job security and rewards for loyal service.

Job Security

The probability or likelihood that an individual will retain their job without the risk of becoming unemployed.