The Crowding-In Effect Depends on the Fact That Often a Decrease

question 135

Multiple Choice

The crowding-in effect depends on the fact that often a decrease in taxes causes a(n)

• A)decrease in interest rates and an increase in the price of existing bonds.
• B)increase in output, which induces more investment.
• C)increase in interest rates and a decrease in the price of existing bonds.
• D)decrease in interest rates and the price of existing bonds.

---

Definitions:

1900

The year 1900 marks the turn of the 20th century, known for the peak of the Second Industrial Revolution, the Boxer Rebellion in China, and as the year before the assassination of Queen Victoria's son, King Umberto I of Italy.

Russian-Germans

Individuals or descendants of those who migrated from Germany to Russia, particularly during the 18th and 19th centuries.

Czar Alexander II

The Emperor of Russia from 1855 to 1881, known for emancipating the serfs in 1861 and implementing significant reforms.

Communist Rule

A system of government where the state plans and controls the economy and a single, often authoritarian party holds power, claiming to make progress toward a higher social order in which all goods are equally shared by the people.