The Crowding-Out Effect Is Likely to Be the Strongest During

question 85

Multiple Choice

The crowding-out effect is likely to be the strongest during periods of

• A)recession.
• B)large budget surpluses.
• C)high employment.
• D)expanding money supply.

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Definitions:

Capital Gains Yield

Capital gains yield refers to the price appreciation component of a stock's total return, calculated as the change in stock price divided by the original price.

Required Return

The minimum return an investor expects to achieve by investing in a particular asset, considering the risk associated.

Dividend Yield

A metric illustrating the annual dividends paid by a firm as a proportion of its share price, typically represented as a percentage.

Equilibrium

A state in which market supply and demand balance each other, and as a result, prices become stable.