The Crowing-Out Effect Occurs Because of

question 60

Multiple Choice

The crowing-out effect occurs because of

• A)higher prices induced by the expansionary fiscal policy.
• B)higher interest rates induced by the expansionary fiscal policy.
• C)higher inflation induced by the expansionary fiscal policy.
• D)higher output induced by the expansionary fiscal policy.

---

Definitions:

Communication Process

The method by which information is transferred from one person or group to another, encompassing several elements including sender, message, medium, receiver, and feedback.

Specialized Form

Specialized form refers to a distinct variation or adaptation of something that is designed for a specific purpose or function.

Binding Arbitration

A legal process in which a dispute is resolved by an arbitrator, with the decision being final and enforceable by law.

Collaborate

To collaborate means to work jointly on an activity or project to achieve a shared goal or outcome.