The Crowding-Out Effect of Higher Interest Rates Can Be Avoided

question 3

Multiple Choice

The crowding-out effect of higher interest rates can be avoided by

• A)expansionary monetary policy.
• B)expansionary fiscal policy.
• C)contractionary monetary policy.
• D)decreasing taxes.

---

Definitions:

Actuarially Determined

Usually pertaining to pension schemes, insurance, or finance, calculated based on actuarial methods and assumptions about future events.

Pension Expense

the cost recognized by an employer for the benefits provided to employees' post-retirement, calculated based on projected obligations and plan assets.

Pension Expense

represents the cost incurred by an employer for maintaining a retirement benefits plan for its employees over a specific period.

Defined Benefit Pension Plan

A type of pension plan where an employer promises a specified pension payment upon retirement, determined by an employee's earnings history, tenure of service, and age.