Which Would Tend to Reduce the Crowding-Out Effect That Occurs

question 11

Multiple Choice

Which would tend to reduce the crowding-out effect that occurs when the federal government increases its borrowing to finance a deficit?

• A) The economy is operating at full employment.
• B) The economy is operating at less than full employment.
• C) The expenditures fail to contribute to the development of human capital.
• D) The deficit financing reduces the profit expectations of business firms.

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Definitions:

Television Watching

The activity of viewing content on a television set, often for entertainment, information, or educational purposes.

Childhood Obesity

Childhood obesity is a medical condition characterized by the excessive accumulation and storage of fat in a child's body, impacting their health and wellness.

Correlation

A relationship between variables in which one variable increases as a second variable also increases (a positive correlation) or decreases (a negative correlation).

Baby Fat

The layer of subcutaneous fat in infants and young children that provides insulation and energy, typically diminishing with age.