The Crowding-Out Effect Is More Likely to Dominate the Crowding-In

question 176

Multiple Choice

The crowding-out effect is more likely to dominate the crowding-in effect when investment is relatively

• A)insensitive to interest rates and to GDP.
• B)insensitive to interest rates but sensitive to GDP.
• C)sensitive to interest rates and to GDP.
• D)sensitive to interest rates and insensitive to GDP.

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Definitions:

Stress

A physical or psychological response to internal or external pressures, perceived as challenging or threatening to an individual's well-being.

Physically

Relating to the body as opposed to the mind or spirit.

Psychologically

Pertaining to the mind or mental processes and how they influence behavior and well-being.

CT Scans

A medical imaging technique that uses computer-processed combinations of many X-ray measurements taken from different angles to produce cross-sectional images of specific areas of a scanned object.