The Crowding-Out Effect Refers To

question 20

Multiple Choice

The crowding-out effect refers to:

• A) higher interest rates and reduced private spending that results from financing federal budget deficits.
• B) higher future taxes accompanying budget deficits to reduce private consumption.
• C) the inflation rate to rise when the unemployment rate is low.
• D) increases in private savings to reduce interest rates and, thereby, crowd-out government

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Definitions:

Variation

Variation refers to the extent to which data points in a data set differ from each other and from the mean of the dataset.

Standard Deviation

A measure that quantifies the amount of variation or dispersion of a set of data values from the mean value.

Standard Deviation

A quantification of the range or diversity in a dataset, illustrating the difference of the numbers from their mean value.

Mean

The average of a set of numbers, calculated by adding them together and dividing by the count of numbers.