When Private Expenditures Decrease as a Result of Increased Government

question 88

Multiple Choice

When private expenditures decrease as a result of increased government spending, this is known as

• A)the stabilizer effect.
• B)the crowding out effect.
• C)the multiplier effect.
• D)government deficit spending.

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Definitions:

Cash Cow

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Break-Even Analysis

An evaluation to determine the point at which revenue received equals the costs associated with receiving the revenue, indicating no net loss or gain.

Sales And Expense

Refers to the process of selling goods or services and the costs incurred during this process.

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A portable, digital optical disc storage format used to store and play back audio recordings, as well as other types of data.