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:

Scatter Diagram

A graphical representation of data points for two variables in a dataset, used to investigate the possible relationship between them.

Interval Data

A type of numerical data that represents quantities and for which intervals between values are meaningful, allowing for a range of mathematical operations.

Scatter Diagram

A graph used to visually display and assess the relationship between two variables by plotting data points.

Scatter Diagram

A graphical representation of data points for two variables to determine if there is a relationship between them.