Crowding Out Refers to the Effect That Deficits Have on Private

question 122

True/False

Crowding out refers to the effect that deficits have on private investment spending.

---

Definitions:

Inducement

An incentive or motivation provided to encourage a certain action or behavior, often used in legal and business contexts.

Output Contract

An agreement between a seller and buyer where the seller agrees to sell all of the production to the buyer, who in turn agrees to accept and pay for the product.

Illusory Contract

A contract that appears to be binding but does not actually commit one or more parties to an actionable obligation.

Defame

To damage someone's reputation through false or unjustified statements.