If There Is Crowding Out, Which of the Following Might

question 43

Multiple Choice

If there is crowding out, which of the following might decrease as government expenditures increase?

• A)the overall change in real GDP
• B)the demand for money curve
• C)interest rates
• D)demand for capital goods

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Definitions:

Mark-up

An augmentation in goods’ cost designed to encompass operational overheads and deliver profit.

Sale Price

The final price at which an item or service is sold, often after discounts are applied.

Operating Expenses

Costs associated with the day-to-day functions of a business, excluding the cost of goods sold, including expenses like rent, utilities, and payroll.

Mark-up

The upcharge on the cost of merchandise to accommodate overhead expenses and profitability.