Suppose the Government Has a Budget Deficit of $2 Billion

question 37

Multiple Choice

Suppose the government has a budget deficit of $2 billion.If there is no Ricardo-Barro effect, how much crowding out of investment occurs?

• A) more than $2 billion
• B) some crowding out occurs, but less than $2 billion
• C) exactly equal to $2 billion dollars
• D) no crowding out occurs and investment does not change
• E) no crowding out occurs because investment increases

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Definitions:

Antipredator Response

Behavioral or physiological strategies employed by prey animals to avoid or deter predators.

Predator Distraction Hypothesis

A theory explaining certain animal behaviors or characteristics as tactics to divert a predator's attention away from the most vulnerable members of a group.

Gull Behavior

The various actions and responses characteristic of gulls, including feeding strategies, social structure, and migration patterns.

Foraging

The act of searching for and exploiting food resources by animals.