The Crowding-Out Effect of Fiscal Policy Arises from Borrowing to Finance

question 248

True/False

The crowding-out effect of fiscal policy arises from borrowing to finance deficit spending.

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Definitions:

Attachment

The strong, enduring, emotional bond between a child and its caregivers that some psychologists consider the basis for relationships later in life.

Moral Reasoning

The process of determining right and wrong in a given situation based on ethical principles and moral codes.

Permissive

An adjective describing a type of behavior or attitude that is tolerant, lenient, or not strict.

Authoritative

Describing a commanding and confident nature or approach, often associated with respect and compliance from others.