If an Increase in the Federal Deficit Stimulates an Economy

question 175

Multiple Choice

If an increase in the federal deficit stimulates an economy, _____

• A) an expansionary gap exists in the economy.
• B) the crowding in of private investment takes place.
• C) the crowding out of private investment offsets the crowding in of private investment.
• D) the crowding out and crowding in of private investment cancels each other out.
• E) interest rates increase significantly.

---

Definitions:

Mutual Benefit Bailment

An arrangement where both the bailor and bailee receive a benefit from the bailed property, typically involving the use or possession of goods.

Liability

The legal responsibility of an individual for his or her actions.

Fur Coat

A coat made from the fur of animals, worn for warmth or as a fashion statement.

Bailment

The act of temporarily transferring physical possession of personal property by one party (the bailor) to another (the bailee) for a specific purpose.