The Crowding in of Private Investment Is More Likely to Occur

question 189

Multiple Choice

The crowding in of private investment is more likely to occur when _____

• A) there is a depreciation of domestic currency.
• B) interest rates increase significantly.
• C) a contractionary gap exists in an economy.
• D) budget deficits lower expectations about economic growth.
• E) an expansionary gap exists in an economy.

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Definitions:

Amygdala

A part of the brain involved in experiencing emotions, particularly fear and pleasure.

Emotional Information

Data or cues that relate to the feelings, emotions, or affective states of an individual or group.

Display Rules

Socially learned norms that dictate how and when emotions should be expressed in certain cultures or situations.

Stress Responses

Behavioral, mental, and/or physical responses to stressors.