The Crowding in of Private Investment Is Associated with _____

question 159

Multiple Choice

The crowding in of private investment is associated with _____

• A) a rightward shift of the aggregate supply curve of an economy.
• B) a leftward shift of the aggregate supply curve of an economy.
• C) a reduction in the level of government spending.
• D) a reduction in corporate income taxes.
• E) an increase in aggregate demand induced by increased government borrowing.

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Definitions:

Weighted Average Cost

A calculation that takes into account the various costs of goods based on their relative weights, to arrive at an average cost per unit.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision, representing the benefits that could have been received but were sacrificed in the pursuit of another option.

Debt-Equity Ratio

The quotient of total liabilities and shareholders' equity, representing a company's leverage financially.