When (If at All)can the Crowding-Out Effect Be Prevented

question 52

Multiple Choice

When (if at all) can the crowding-out effect be prevented?

• A)when the Fed decreases the money supply to accommodate the expansionary fiscal policy
• B)when the real money supply is held constant
• C)when the real balance effect is working
• D)when the Fed allows the real money supply to increase sufficiently to keep the interest rate from rising

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Definitions:

Competence

The ability to do something successfully or efficiently.

Sexual Objectification

The tendency to think about women in a narrow way as objects rather than full humans, as if their physical appearance is all that matters.

Stereotype Threat

The risk of confirming negative stereotypes about an individual's racial, ethnic, gender, or cultural group, which can hinder their performance.

Institutional Discrimination

A systemic discrimination that occurs within institutions like schools, companies, and governments, where policies, practices, or procedures cause unequal treatment of particular groups.