When Consumption and Investment Is Reduced Because of the Higher

question 77

Multiple Choice

When consumption and investment is reduced because of the higher interest rates induced by the government expansionary fiscal policy,the effect is called

• A)the crowding-in effect.
• B)the crowding-out effect.
• C)the multiplier effect.
• D)the budget effect.

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Definitions:

Receptors

Biological molecules or structures on the surface of cells that bind to specific molecules, leading to a response within the cell.

Stimuli

External or internal changes that affect the sensory organs and elicit responses from an organism or a biological system.

Nociception

Perception of pain, temperature, and itch.

Perception

The process by which organisms interpret and organize sensation to produce a meaningful experience of the world.