Did the Large U

question 204

Multiple Choice

Did the large U.S.budget deficits in the 1980s "crowd out" investment as some economists had predicted?

• A)Yes, investment dropped as predicted.
• B)Yes, although investment did not fall nearly as much as some had feared.
• C)No, investment was not crowded out, but net exports dropped.
• D)No, no crowding out at all occurred.

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Definitions:

Intermediate Good

A product utilized in the manufacture of a final good or finished product, not sold directly to end consumers.

Local Nursery

A place or business that specializes in growing and selling plants and trees for gardening and landscaping within a local area.

Grandma

A familial term used to refer to the mother of one's parent, often associated with elder care, wisdom, and family traditions.

Bakery

A place where bread, pastries, cakes, and other baked goods are made or sold.