The Crowding-Out Effect Implies That Budget Deficits Will

question 110

Multiple Choice

The crowding-out effect implies that budget deficits will

• A)increase real interest rates and lower the future stock of private capital.
• B)decrease real interest rates and increase the future stock of private capital.
• C)increase the productivity of workers in the future.
• D)lead to higher levels of income for workers in the future.

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Definitions:

Life-span Developmental Psychology

The study of human growth, changes, and stability across the entire lifespan.

Psychometry

The psychological measurement of mental functions, abilities, and processes through standardized tests and assessments.

Superego

In psychoanalytic theory, it represents the moral component of the personality, internalizing the values and norms of society.

Locomotor-genital Stage

Not a recognized stage in standard psychological theories. It may be a confusion with stages from Freudian or Eriksonian theories.