The Crowding-Out Effect Refers to

question 142

Multiple Choice

The crowding-out effect refers to

• A) government spending crowding out private spending.
• B) private saving crowding out government saving.
• C) government investment crowding out private investment.
• D) private investment crowding out government saving.

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Definitions:

First-Hand Knowledge

Information or data obtained directly through personal experience or observation.

Externalities

Economic side effects or by-products that affect an uninvolved third party; can be either positive or negative.

Public Goods

Items that are non-excludable and non-rivalrous, meaning they can be enjoyed by everyone, regardless of whether they contribute to their provision.