The Crowding-Out Effect Refers to the Tendency of Expansionary Fiscal

question 177

Multiple Choice

The crowding-out effect refers to the tendency of expansionary fiscal policy to

• A)cause decreases in planned investment or planned consumption.
• B)cause households to save less.
• C)replace low-skilled labor with higher-skilled labor.
• D)cause firms to produce beyond capacity.

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Definitions:

Builder's Lien Legislation

Laws providing builders, contractors, and laborers with the right to secure payment for services and materials through a lien on the improved property.

Holdback

A specified percentage that a person owing funds on a construction contract must retain for a specified period to protect against claims made by the suppliers of goods and services.

Real Property

Land and anything permanently affixed to it, such as buildings and trees, including both the physical property and the rights associated with owning it.

Personal Property

Objects or belongings that are not fixed to land or buildings, including both physical items and intangible rights.