If an Increase in the Budget Deficit Reduces National Saving

question 24

Multiple Choice

If an increase in the budget deficit reduces national saving and investment, we have witnessed a demonstration of

• A) intermediation.
• B) equity finance.
• C) crowding out.
• D) the investment fund effect.

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Definitions:

Procedural Memory

Long-term memory of motor skills, habits, and ways of doing things, which can be recalled without conscious effort; sometimes called implicit memory.

Speed of Mental Processes

The rate at which the brain processes information, including perception, memory, and problem-solving.

Comprehension Skills

The ability to understand, process, and interpret written or spoken language.

Long-Term Memory

Storage of virtually unlimited capacity that holds information for long periods.