The Crowding-Out Effect Refers To

question 20

Multiple Choice

The crowding-out effect refers to:

• A) higher interest rates and reduced private spending that results from financing federal budget deficits.
• B) higher future taxes accompanying budget deficits to reduce private consumption.
• C) the inflation rate to rise when the unemployment rate is low.
• D) increases in private savings to reduce interest rates and, thereby, crowd-out government

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Definitions:

Social Loafing

The phenomenon where individuals exert less effort to achieve a goal when they work in a group compared to when they work alone.

Role Ambiguity

Occurs when an individual lacks clear direction or information about their responsibilities and expectations in their role.

Low Power

A term often used in social sciences to refer to individuals or groups that lack the authority, control, or influence to achieve their objectives relative to those with more power.

Psychological Intimacy

Emotional and psychological closeness to other team or group members.