Which of the Following Best Describes Crowding In

question 34

Multiple Choice

Which of the following best describes crowding in?  

• A) when current budget deficits allow for future fiscal policy initiatives 
• B) the potential for government spending to stimulate private investment in an otherwise dead economy 
• C) the displacement of interest-sensitive private investment that occurs when higher government deficits drive up market interest rates 
• D) when budget deficits help to increase tax revenues

---

Definitions:

Accounts Receivable

Money owed to a business by its customers for goods or services delivered but not yet paid for.

Notes Receivable

Notes receivable are written promises for amounts to be received, typically detailing the interest rate and when the principal and interest payments are due.

Claims

Demands for payments or property ownership typically made through legal or financial processes by creditors or insurers.

Subsidiary Ledger

A detailed ledger that contains the individual accounts related to a specific main account, facilitating detailed tracking and reconciliation.