A Drop in Consumption or Investment Spending Caused by Increased

question 51

Multiple Choice

A drop in consumption or investment spending caused by increased government spending is referred to as:

• A) the multiplier effect.
• B) an expansionary gap.
• C) Ricardian equivalence.
• D) the paradox of thrift.
• E) crowding out.

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Definitions:

Mole

A unit of measurement in chemistry that quantifies the amount of a substance, specifically 6.022 x 10^23 particles of that substance.

CaCO3

Calcium carbonate, a chemical compound found in rocks as the minerals calcite and aragonite, and is the main component of pearls, as well as marine organisms' shells.

CO2

Carbon Dioxide, a colorless, odorless gas produced by burning carbon and organic compounds and by respiration.

CaO

Calcium oxide, a white, caustic, alkaline crystalline solid commonly known as quicklime, used in cement production and various chemical processes.