Assume That If There Were No Crowding Out, an Increase

question 148

Multiple Choice

Assume that if there were no crowding out, an increase in government spending would increase GDP by $100 billion. If there had been partial crowding out, however, then GDP would have

• A) increased by more than $100 billion.
• B) increased by less than $100 billion.
• C) increased by $100 billion.
• D) not increased.

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Definitions:

Budgeted Accounts Receivable

The projected amount of money owed to a company by its customers for goods or services delivered or used but not yet paid for.

Collections

Refers to the process or activity of gathering or receiving payments from customers, typically relating to accounts receivable.

Cash Budget

A budget that estimates cash inflows and outflows over a specific period, used to assess whether a company has sufficient cash to meet its obligations.

Budgeted Required Production

The quantity of product that a company plans to manufacture in a specific period, determined based on sales forecasts and inventory targets.