"Crowding Out" Caused by Deficit Financing Can Result in Tighter

question 57

True/False

"Crowding out" caused by deficit financing can result in tighter credit conditions and higher interest rates.

---

Definitions:

Core Business

The primary area of a company's operation or the main source of its profitability, representing its fundamental mission or the key focus of its commercial activity.

Noncore Business

Parts of a company's operations that are not essential to its main line of business or primary revenue source.

Accounting

The practice of recording, classifying, and summarizing financial transactions to provide useful financial information for decision-making.

Production

The process of creating goods and services using labor, machinery, and resources to meet consumer demand.