Which of the Following Is "Crowded Out" by Higher Interest

question 75

Multiple Choice

Which of the following is "crowded out" by higher interest rates that can be the result of expansionary fiscal policy?

• A)consumption
• B)private investment
• C)net exports
• D)All of the above are crowded out by higher interest rates.

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Definitions:

Income Statement Amounts

The monetary values of revenue, expenses, gains, and losses reported in the income statement.

Common-Size Percentages

Financial analysis tool that converts each line item of financial statements into a percentage of a common base figure to allow for easy comparison.

Balance Sheets

Financial statements that show a company's financial position, detailing assets, liabilities, and equity at a specific point in time.

Inventory Turnover

A ratio indicating how many times a company's inventory is sold and replaced over a period.