The "Crowding Out" Effect Refers To

question 18

Multiple Choice

The "crowding out" effect refers to:

• A)the increase in domestic investment by foreigners,leaving little investment choice for domestic investors.
• B)the reduction in the interest rate caused by governments running a deficit.
• C)the reduction in domestic investment caused by governments running a deficit.
• D)the irrational exuberance of the market reducing the number of rational investments available.

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Definitions:

Profit Sharing

An incentive program where employees receive a share of the company's profits, reflecting their contribution to its success.

Weak Economy

A state where a country's overall economic performance is poor, characterized by low growth, high unemployment, and declining business activities.

Job Depth

The degree of control employees have over their tasks and procedures at work.

Assembly Line

A manufacturing process that breaks down the production into sequential steps carried out by different workers, significantly increasing efficiency.