The Crowding-Out Effect Occurs When

question 34

Multiple Choice

The crowding-out effect occurs when

• A)foreign investors crowd out U.S. investors in the market for loanable funds.
• B)the federal government's demand for loanable funds due to a higher budget deficit crowds out the private demand in the market for loanable funds.
• C)institutional investors crowd out individual investors in the market for loanable funds.
• D)firms and municipal governments crowd out households in the market for loanable funds.

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Definitions:

Approval

The act of accepting or endorsing something, often in a formal or official capacity.

Cooley

Charles Horton Cooley was an American sociologist who is best known for his concept of the looking-glass self, which describes the process by which individuals base their sense of self on how they believe others view them.

Looking-Glass Self

A concept in sociology suggesting that an individual's self-image is shaped by how others perceive them, acting as a reflective social mirror.

Abstract Moral Stage

A theoretical phase in moral development characterized by an understanding of ethical principles that transcend personal interests or societal conventions.