The Enormous Budget Deficits of 2009 Through 2011 Meant That

question 20

Multiple Choice

The enormous budget deficits of 2009 through 2011 meant that the federal government was borrowing upwards of $1.5 trillion per year. If that borrowing had limited the ability of the private sector to get financial capital for its purposes economists would call this

• A)crowding in.
• B)forcing in.
• C)crowding out.
• D)forcing aside.

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Definitions:

Porter's Model

A strategic tool developed by Michael E. Porter used to analyze the competitive environment of an industry, including five forces: the threat of new entrants, the threat of substitutes, the bargaining power of buyers, the bargaining power of suppliers, and competitive rivalry.

Generic Competitive Strategies

Generic Competitive Strategies are basic approaches developed by Michael Porter for businesses to gain competitive advantage, including cost leadership, differentiation, and focus strategies.

Cost Synergies

The financial savings achieved by combining two or more entities, processes, or systems, leading to lower costs than if operated separately.

Human Imagination

The ability of the mind to be creative, innovate, and conceive of scenarios beyond current reality.