Crowding in Is More Likely to Occur,as a Consequence of Federal

question 132

Multiple Choice

Crowding in is more likely to occur,as a consequence of federal deficits,when

• A)the economy is overheated
• B)interest rates increase significantly
• C)a contractionary gap exists
• D)the deficits lower expectations about economic growth
• E)an expansionary gap exists

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Definitions:

Forecast

A prediction or estimate of future events or trends, often based on analysis of past and current data.

Liabilities

Debts that a firm owes to others.