What Impact Does a Larger Crowding-Out Effect Have on the Magnitude

question 120

Multiple Choice

What impact does a larger crowding-out effect have on the magnitude of a given fiscal policy's effect on interest rates and investment?

• A)It decreases the magnitude of a given fiscal policy's effect on interest rates and increases the magnitude of its effect on investment.
• B)It increases the magnitude of a given fiscal policy's effect on interest rates and increases the magnitude of its effect on investment.
• C)It decreases the magnitude of a given fiscal policy's effect on interest rates and decreases the magnitude of its effect on investment.
• D)It increases the magnitude of a given fiscal policy's effect on interest rates and decreases the magnitude of its effect on investment.

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Definitions:

Biodiversity

The variety and variability of life on Earth, encompassing the diversity of species, their genes, and the ecosystems they inhabit.

Ecotourism

A form of sustainable travel to natural areas, focusing on conserving the environment and improving the well-being of the local people.

Airport Tax

A charge levied on passengers by an airport, included in the ticket price, for the use of airport facilities.

Natural Outdoor

Environments or spaces not created or significantly altered by humans, allowing for interaction with nature.