Crowding Out Occurs When

question 40

Multiple Choice

Crowding out occurs when:

• A)unemployment rises as a result of downward wage rigidity
• B)unemployment rises because workers are displaced
• C)government borrowing pushes up interest rates,causing private investment to fall
• D)government borrowing pushes up interest rates,causing fiscal policy to overshoot the expansion of aggregate demand

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Definitions:

Scientific Goals

Objectives or aims of scientific research, which typically include description, explanation, prediction, and control of phenomena.

Placebo Effect

A phenomenon in which a patient experiences a perceptible improvement in their health or well-being after receiving a treatment that has no therapeutic effect.

Subliminal Messages

Messages that are designed to pass below the normal limits of perception.

Methodological Flaw

A mistake or error in the design or execution of a research study that potentially impacts the validity of the findings.