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

question 130

Multiple Choice

What impact does a larger crowding-out effect have on the magnitude of a given fiscal policy's effect on real output in the short run and investment?

• A)It increases the magnitude of a given fiscal policy's effect on real output in the short run and increases the magnitude of its effects on investment.
• B)It increases the magnitude of a given fiscal policy's effect on real output in the short run and decreases the magnitude of its effects on investment.
• C)It decreases the magnitude of a given fiscal policy's effect on real output in the short run and increases the magnitude of its effects on investment.
• D)It decreases the magnitude of a given fiscal policy's effect on real output in the short run and decreases the magnitude of its effects on investment.

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Definitions:

Defensive Attribution

A cognitive bias theory explaining why people tend to attribute more blame to actions of others than to self, especially in negative situations, as a defense mechanism.

Matching Hypothesis

A theory suggesting that individuals are more likely to form long-lasting relationships with those who are equally matched in social attributes, like physical attractiveness.

Males

Refers to the biological sex that typically produces small, mobile gametes, such as sperm in humans.

Equal Physical Attractiveness

The theory that individuals are more likely to form and maintain relationships with others who are of a similar level of attractiveness.