Which One of the Following Might Offset a Crowding-Out Effect

question 138

Multiple Choice

Which one of the following might offset a crowding-out effect of financing a large public debt?

• A) A decline in net exports.
• B) An increase in public investment.
• C) A decrease in the money supply.
• D) A decline in public investment.

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Definitions:

Observations

The act of carefully monitoring or examining phenomena, events, or behaviors to gather data or insights.

Meaningful

Having significant quality or purpose, often carrying deep importance or value.

Reliable

The quality of being consistently good in performance, yielding trustworthy results over time.

Complete

fully finished or ended, with all necessary parts or elements present and accounted for.