Which of the Following Correctly Explains the Crowding-Out Effect

question 169

Multiple Choice

Which of the following correctly explains the crowding-out effect?

• A)An increase in government expenditures decreases the interest rate and so increases investment spending.
• B)An increase in government expenditures increases the interest rate and so reduces investment spending.
• C)A decrease in government expenditures increases the interest rate and so increases investment spending.
• D)A decrease in government expenditures decreases the interest rate and so reduces investment spending.

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Definitions:

Goal Setting

The process of identifying specific, measurable, achievable, relevant, and time-bound objectives that guide an individual's or organization's focus and direction.

Supervisor Sets

Supervisor sets refer to the specific guidelines or expectations set by supervisors for their subordinates to follow in an organizational context.

Employee's Abilities

Refers to the skills, knowledge, and competencies that an individual possesses, which enable them to perform tasks effectively in a workplace.

Valence

In the field of motivation, valence refers to the emotional significance attached to something, determining how desirable or undesirable it is.