The Crowding-Out Effect Refers to the Tendency of

question 42

Multiple Choice

The crowding-out effect refers to the tendency of

• A) the additional borrowing accompanying larger budget deficits to increase interest rates and reduce private spending.
• 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 expenditures.

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Definitions:

Alkanes

Saturated hydrocarbons containing only single bonds between carbon atoms, generally characterized by the formula CnH2n+2.

Commercial Uses

Applications or purposes of a product, substance, or technology in various industries for profit generation and consumer needs fulfillment.

Intermolecular Force

Forces of attraction or repulsion which act between neighboring particles (atoms, molecules, or ions).

Alkane Molecules

Compounds made up of only hydrogen and carbon atoms arranged in a tree structure with single bonds.