Which of the Following Statements About Crowding Out Is False

question 42

Multiple Choice

Which of the following statements about crowding out is false ?

• A) It is not caused by a budget surplus.
• B) It is caused by a budget deficit.
• C) It can completely offset the government's debt
• D) It affects interest rates and not economic growth.

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Definitions:

Durable Power

Refers to a durable power of attorney, a legal document that grants someone the authority to act on another's behalf, even if the grantor becomes incapacitated.

Medical Decisions

The process of making choices related to health care by patients, often involving considerations of various treatment options.

Executed

A term applied to a contract whose terms have all been fully performed.

Implied Trust

A trust created by a court when (1) an express trust fails and the court can imply the existence of a trust from certain behavior or (2) the law steps in to protect someone from fraud or other wrongdoing.