The Crowding-Out Effect Is More Likely to Dominate the Crowding-In

question 176

Multiple Choice

The crowding-out effect is more likely to dominate the crowding-in effect when investment is relatively

• A)insensitive to interest rates and to GDP.
• B)insensitive to interest rates but sensitive to GDP.
• C)sensitive to interest rates and to GDP.
• D)sensitive to interest rates and insensitive to GDP.

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Definitions:

Payment Schedule

A predetermined plan outlining the specific dates and amounts for payments to be made by one party to another, often used in billing and financial agreements.

Charges

Fee for services rendered.

Double-Entry Bookkeeping System

A bookkeeping method in which every transaction is entered twice, to two separate accounts, with one being a debit and the other a credit, to maintain the balance of the accounting equation.

Single-Entry System

A simple accounting system where each transaction is recorded with a single entry, typically used by small businesses or for personal finances.