The Idea That,under Certain Circumstances,deficits Can Increase Investment Is Known

question 48

Multiple Choice

The idea that,under certain circumstances,deficits can increase investment is known as

• A) the structural deficit.
• B) the crowd-out effect.
• C) structural unemployment.
• D) the crowd-in effect.
• E) the Laffer effect.

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Definitions:

Capital

Financial assets or the financial value of assets, such as factories and machinery, essential for producing goods and services.

National Income

The total value of all goods and services produced by a country's economy over a specific period, usually measured annually.

Richest Tenth

The segment of a population that represents the highest 10% in terms of wealth or income.

Poorest Fifth

The segment of a population that falls within the lowest 20% in terms of income distribution.