The Reduction in Private Borrowing Caused by an Increase in Government

question 70

Multiple Choice

The reduction in private borrowing caused by an increase in government borrowing is called:

• A) the crowding out effect.
• B) surplus investment.
• C) the dissaving effect.
• D) the savings effect.

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Definitions:

Pitch Increase

A rise in the perceived frequency of sound, leading to the auditory sensation of a higher tone.

Visible Light

The part of the electromagnetic spectrum that stimulates the eye and produces visual sensations.

Cosmic Rays

High-energy particles, originating outside the solar system, that travel through space and strike the Earth's atmosphere.

Ultraviolet Rays

Invisible radiation with wavelengths shorter than visible light but longer than X-rays, capable of producing chemical reactions and causing harm to skin and eyes.