The Response of Investment Spending to an Increase in the Government

question 178

Multiple Choice

The response of investment spending to an increase in the government budget deficit is called

• A)expansionary investment.
• B)private dissaving.
• C)crowding out.
• D)income minus net taxes.

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Definitions:

Retroactive Interference

A memory phenomenon where new information learned interferes with the ability to recall old information.

Encoding Specificity

The principle that the retrieval of information is improved when the context present at encoding and retrieval is the same.

Von Restorff Effect

A psychological principle that items which stand out are more likely to be remembered than other items.

Episodic Memory

The memory of autobiographical events that can be explicitly stated, including times, places, and associated emotions.