Which of the Following Is True About an Increase in the U.S

question 19

Multiple Choice

Which of the following is true about an increase in the U.S. government's budget deficit?

• A) It will lead to global crowding out if U.S. interest rates fall below the level of interest rates in other countries.
• B) It will cause outflows of foreign funds from the United States as foreign investors move their funds to other countries.
• C) It will cause an inward shift in the aggregate demand for funds curve.
• D) None of the above

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Definitions:

Readily Available

Something that is easily obtainable or accessible without significant effort or obstruction.

Value Rationality

A decision-making process focused on achieving a specific goal in a consistent, logical manner, irrespective of the personal utility gained.

Traditional Action

A term often associated with Max Weber, referring to actions motivated by established habits or customs rather than rational calculations or ethical considerations.

Means-ends Rationality

A concept in sociology that refers to people's actions being directed towards achieving specific goals by the most efficient means.