Crowding Out Will Be Greater

question 10

Multiple Choice

Crowding out will be greater

• A)the less sensitive consumption spending is to changes in the interest rate.
• B)the further equilibrium GDP is below potential GDP.
• C)the more sensitive investment spending is to changes in the interest rate.
• D)if the economy is in recession,rather than at full employment.

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Definitions:

Neuroticism

A personality trait characterized by anxiety, fear, moodiness, worry, envy, frustration, jealousy, and loneliness.

Neuroticism

A personality trait characterized by instability, anxiety, and aggression, making an individual more prone to psychological stress.

Irrationality

The quality of being illogical or unreasonable in thoughts or actions.

Moodiness

A state characterized by frequent changes in mood or temper, often without external causes.