Crowding Out Refers to the Situation in Which

question 16

Multiple Choice

Crowding out refers to the situation in which

• A) borrowing by the federal government raises interest rates and causes firms to invest less.
• B) foreigners sell their bonds and purchase U.S. goods and services.
• C) borrowing by the federal government causes state and local governments to lower their taxes.
• D) increased federal taxes to balance the budget causes interest rates to increase and consumer credit to decrease.

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Definitions:

Nurture

The influence of environmental factors like education and care on the growth and development of an individual.

Intelligence

The ability to learn, comprehend, solve problems, and adjust to novel circumstances.

Biological Parents

The parents who are genetically related to a child, as opposed to adoptive parents or step-parents.

Interpersonal Intelligence

The ability to understand and interact effectively with others, recognizing their moods, intentions, and motivations.