The Crowding-Out Effect Is

question 297

Multiple Choice

The crowding-out effect is

• A) strongest when the economy is at full employment.
• B) strongest when the economy is in a deep recession.
• C) weakest when there is demand-pull inflation.
• D) equally strong, regardless of the state of the macroeconomy.

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Definitions:

Intentional Confinement

The deliberate restriction of a person's freedom of movement without lawful justification.

Defense

The evidence and arguments presented in support of the defendant's case in a criminal action or lawsuit.

Contributory Negligence

A theory in tort law under which a complaining party’s own negligence contributed to his or her injuries. Contributory negligence is an absolute bar to recovery in some jurisdictions.

Proximate Cause

Legal cause; exists when the connection between an act and an injury is strong enough to justify imposing liability.