Which of the Following Terms Refers to the Reduction in Demand

question 151

Multiple Choice

Which of the following terms refers to the reduction in demand that results when a fiscal expansion raises the interest rate?

• A)the multiplier effect
• B)the crowding-out effect
• C)the accelerator effect
• D)the Ricardian equivalence effect

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Definitions:

Cryotherapy

A treatment method that uses extremely cold temperatures to freeze and remove abnormal tissue or reduce pain and inflammation.

Laser Therapy

A medical treatment that uses focused light to treat or remove tissue in a precise manner.

Diabetic Mother

A woman with diabetes, a condition characterized by high blood sugar levels, who is pregnant or planning to become pregnant.

Hypoglycemic

Pertaining to or characterized by hypoglycemia, a condition marked by abnormally low blood sugar levels.