Which of the Following Is "Crowded Out" by Higher Interest

question 75

Multiple Choice

Which of the following is "crowded out" by higher interest rates that can be the result of expansionary fiscal policy?

• A)consumption
• B)private investment
• C)net exports
• D)All of the above are crowded out by higher interest rates.

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Definitions:

Sexual Maturation

The process by which individuals reach a state of full reproductive ability.

Physical Growth

The process of bodily changes and increase in size, strength, and functionality that occur over time, especially significant during childhood and adolescence.

Limbic System

The parts of the brain that interact to produce emotions, including the amygdala, the hypothalamus, and the hippocampus. Many other parts of the brain are also involved with emotions.

Prefrontal Cortex

The prefrontal cortex is a region in the front part of the frontal lobes of the brain, important for decision making, complex cognitive behavior, personality expression, and moderating social behavior.