Below the Full-Employment Level of Output, Expansionary Fiscal Policy Causes

question 24

Multiple Choice

Below the full-employment level of output, expansionary fiscal policy causes private investment to rise, thus increasing output and creating new investment opportunities. This Liberal concept is known as the

• A) crowding-in effect.
• B) crowding-out effect.
• C) trickle-down effect.
• D) multiplier effect.

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Definitions:

Plate Boundary

The edges where two tectonic plates meet, which can be divergent, convergent, or transform, leading to various geological features and events.

Normal Faults

Fractures in the Earth's crust where the rock above the fault plane has moved down relative to the rock below.

Crust Thicken

Crust thickening refers to the increase in the Earth's crust's depth due to geologic processes, such as the accumulation and compression of sediments or the intrusion of igneous rock.

Continental Collision

The process where two continental plates collide, leading to the formation of mountain ranges.