The Crowding Out of Private Investment Is Associated with

question 89

Multiple Choice

The crowding out of private investment is associated with

• A)a reduction in profitable investment opportunities due to a recession
• B)increased competition from foreign investors in U.S.markets
• C)higher interest rates resulting from a declining rate of saving
• D)higher interest rates resulting from increased borrowing by the federal government
• E)higher interest rates resulting from restrictive monetary policy

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Definitions:

Divergent Thinking

A cognitive process that involves generating creative ideas by exploring many possible solutions.

Hereditary Studies

Research into how characteristics and conditions are transmitted from parents to offspring through genes.

Genetic Engineering

The manipulation of an organism's genes using biotechnology, including the editing, adding, or removing of DNA sequences to achieve desired traits.

Displacement

A psychological defense mechanism where mind redirects emotions or feelings from the original source to a less threatening target.