If 'Crowding Out' Occurs, an Increase in Government Spending

question 98

Multiple Choice

If 'crowding out' occurs, an increase in government spending:

• A)increases the interest rate and consumption and investment spending decline.
• B)decreases the interest rate and consumption and investment spending decline.
• C)increases the interest rate and consumption and investment spending rise.
• D)decreases the interest rate and consumption and investment spending rise.

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Definitions:

Custodial Parent

The parent who is granted the primary right and responsibility to care for a child following a divorce or separation, as determined by a court of law.

Noncustodial Parent

A parent who does not have legal custody of their child, meaning the child does not live with them the majority of the time.

Binuclear Families

Families created when two households share in raising children, such as two divorced parents who have remarried.

Blended Families

Families formed by the merging of parents with children from previous relationships, creating new kinship bonds.