Crowding Out Will Be Greater

question 10

Multiple Choice

Crowding out will be greater

• A)the less sensitive consumption spending is to changes in the interest rate.
• B)the further equilibrium GDP is below potential GDP.
• C)the more sensitive investment spending is to changes in the interest rate.
• D)if the economy is in recession,rather than at full employment.

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Definitions:

Humanistic

Relating to an approach in psychology that emphasizes individual worth, personal growth, and the concept of self-actualization.

Phobic Disorder

An anxiety disorder characterized by an intense and irrational fear of specific objects, activities, or situations.

Panic Disorder

A psychiatric disorder characterized by sudden and repeated episodes of intense fear accompanied by physical symptoms that may include chest pain, heart palpitations, shortness of breath, dizziness, or abdominal distress.

Conversion Reaction

A type of psychological disorder where emotional distress or unconscious conflict is expressed through physical symptoms, without an organic cause.