The Crowding-In Effect Depends on the Fact That Often a Decrease

question 135

Multiple Choice

The crowding-in effect depends on the fact that often a decrease in taxes causes a(n)

• A)decrease in interest rates and an increase in the price of existing bonds.
• B)increase in output, which induces more investment.
• C)increase in interest rates and a decrease in the price of existing bonds.
• D)decrease in interest rates and the price of existing bonds.

---

Definitions:

Limited Liability

A legal principle where a person's financial responsibility is limited to a fixed sum, most commonly the value of a person's investment in a company or partnership.

Cooperatives

A business entity owned and operated by a group of individuals for their mutual benefit, focusing on service over profit.

LLC

Limited Liability Company, a flexible form of enterprise that blends elements of partnership and corporate structures, providing limited liability protection to its owners.

Qualification

A condition or requirement that must be met or possessed by an individual to perform a certain job or task.