"Crowding Out" Is the Theory That an Increase in Our

question 63

Multiple Choice

"Crowding out" is the theory that an increase in our federal government's budget deficit will likely:

• A) increase the national debt.
• B) increase interest rates.
• C) decrease borrowing by households and businesses
• D) reduce the impact of the spending multiplier implies because of crowding out.
• E) all of the above.

---

Definitions:

Productive Activity

Actions or tasks that contribute to the production of goods and services in an economy.

Class-for-itself

Refers to a social group that is self-aware of its social position and its interests within the broader social structure.

Exploitation

The action or fact of treating someone unfairly in order to benefit from their work or resources.

Proletariat

Workers or the working class, especially those without substantial capital or ownership of production means, in Marxist theory and analysis.