Which of the Following Sequences Best Represents the Crowding-Out Effect $\uparrow \Rightarrow$

question 233

Multiple Choice

Which of the following sequences best represents the crowding-out effect?

• A)government purchases \(\uparrow \Rightarrow\) GDP\(\uparrow \Rightarrow\) supply of money \(\darr\Rightarrow\) equilibrium interest rate \(\uparrow \Rightarrow\) quantity of goods and services demanded \(\darr\)
• B)government purchases \(\darr\Rightarrow\) GDP \(\darr\Rightarrow\) demand for money \(\darr\Rightarrow\) equilibrium interest rate \(\darr\Rightarrow\) quantity of goods and services demanded \(\darr\)
• C)government purchases \(\uparrow \Rightarrow\) GDP \(\uparrow \Rightarrow\) demand for money \(\uparrow \Rightarrow\) equilibrium interest rate \(\uparrow \Rightarrow\) quantity of goods and services demanded \(\darr\)
• D)taxes \(\uparrow \Rightarrow\)GDP \(\darr\Rightarrow\) demand for money \(\darr\Rightarrow\) equilibrium interest rate \(\uparrow \Rightarrow\) quantity of goods and services demanded \(\darr\)

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Definitions:

Channel Assembly

A process in supply chain management where a product is assembled at the point of distribution or at the retailer rather than at the manufacturing facility.

Effective Management

Practices and techniques that lead to achieving desired results through efficient use of resources and team coordination.

Bullwhip Effect

A phenomenon where inaccurate or distorted information in a supply chain causes overreaction and variability in orders, often leading to inefficiency and excess inventory.

Weighted Total

A calculated total in which different components are given different levels of importance or weight, often used in assessments or decision-making processes.