Crowding Out Occurs by

question 151

Multiple Choice

Crowding out occurs by

• A)causing reduced government purchases of goods and services
• B)reducing the value of the multiplier used for government purchases of goods and services by increasing the interest rate
• C)reducing the value of the multiplier used for government purchases of goods and services by increasing the marginal propensity to consume
• D)reducing the value of the multiplier used for government purchases of goods and services by decreasing the marginal propensity to consume
• E)increasing the value of the multiplier used for government purchases of goods and services by increasing the marginal propensity to consume

---

Definitions:

Monads

In the philosophy of Leibniz, monads are simple substances that form the foundation of the universe, each being a unique, indecomposable, dynamic entity with its own internal properties but without spatial extension.

Physical Substances

Entities or materials that exist in the physical world, possessing mass and occupying space.

Virtual Version

A digital or simulated version of something real, created within a computer or online environment.

Subatomic Particles

Particles that are smaller than an atom, including protons, neutrons, and electrons, which are the basic building blocks of atoms.