In the Long Run,the Crowding-Out Effect of an Increase in Government

question 114

Multiple Choice

In the long run,the crowding-out effect of an increase in government purchases is

• A) more complete than in the short run
• B) canceled out by increases in infrastructure spending
• C) less complete than in the short run
• D) canceled out by improved consumer confidence
• E) a multiple of the initial change in spending

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Definitions:

Disintermediation

A source of channel conflict that occurs when a channel member bypasses another member and sells or buys products direct.

Directly Sells

The practice of selling products or services directly to the consumer in a non-retail environment, avoiding traditional retail channels.

Vertical Conflict

Disagreements or disputes between different levels of the same distribution channel, such as manufacturers and retailers or wholesalers and retailers.

Marketing Channel

The pathways or routes through which goods and services flow from the producer to the consumer, including intermediaries like wholesalers and retailers.