Which One of the Following Might Offset a Crowding-Out Effect

question 348

Multiple Choice

Which one of the following might offset a crowding-out effect of financing a large public debt?

• A) a decline in net exports
• B) an increase in public investment
• C) a decrease in the money supply
• D) a decline in public investment

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Definitions:

IFRS 3

International Financial Reporting Standard that deals with the accounting for business combinations, guiding how companies should reflect mergers and acquisitions.

Acquisition Method

An approach in accounting for business combinations where the acquirer applies the fair value to the identifiable assets and liabilities of the acquired entity.

Issuing Debt

The act of a company borrowing money through the sale of securities like bonds to investors.

Amortized

The gradual reduction of a debt or the cost of an intangible asset over a specific period, typically through regular payments or writedowns.