If Crowding Out Exists, the Expansionary Effect of Government Spending

question 52

Multiple Choice

If crowding out exists, the expansionary effect of government spending will be:

• A)smaller than intended.
• B)negative.
• C)infinite.
• D)larger than intended.
• E)zero.

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Definitions:

Cognitive Needs

Psychological requirements of a person for understanding, knowledge, and intellectual development.

Consciousness

The condition in which an individual is conscious of and can reflect upon their own being, senses, mental activities, environment, and life events.

Maslow

A leading figure in psychology, Abraham Maslow was an American psychologist famous for formulating the hierarchy of needs theory, which asserts that psychological health stems from the sequential fulfillment of inherent human needs, the ultimate of which is self-actualization.

Personal Concerns

Issues or matters that hold significant importance or relevance to an individual's life and wellbeing.