As a Result of the Crowding-Out Effect, Interest Rates _____

question 328

Multiple Choice

As a result of the crowding-out effect, interest rates _____ and private sector borrowing _____.

• A) increase; increases
• B) decrease; increases
• C) decrease; decreases
• D) increase; decreases

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Definitions:

Budgeting

The process of creating a plan to spend money, outlining an organization's financial and operational goals.

Flexible Budget

A budget that molds itself to fit changes in the volume or intensity of activity.

Other Expenses

Costs not directly related to the production or selling of goods and services, such as interest expenses and loss from foreign exchange.

Containers Refurbished

Used containers that have been restored to good condition and functionality for reuse.