Crowding Out Occurs By

question 150

Multiple Choice

Crowding out occurs by:

• A)causing reduced government purchases of goods and services.
• B)reducing the value of the multiplier used for government purchases of goods and services by increasing the interest rate.
• C)reducing the value of the multiplier used for government purchases of goods and services by increasing the marginal propensity to consume.
• D)reducing the value of the multiplier used for government purchases of goods and services by decreasing the marginal propensity to consume.
• E)causing reduced imports of goods and services.

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Definitions:

Year amount

Typically refers to the total sums of money or quantities measured over the course of a year in financial or quantitative analyses.

Average costing

Average costing is an inventory costing method where all costs of inventory are averaged over the goods available for sale, providing a medium cost per unit.

Rising prices

An economic phenomenon where the general level of prices for goods and services increases over a period.

Income taxes

Taxes levied by governments on individuals or entities' income.