Crowding Out Refers to

question 30

Multiple Choice

Crowding out refers to

• A) excess demand for a good of which there is a shortage
• B) the negative effect of government budget deficits on investment
• C) consumers saving tax cuts in anticipation of future tax increases
• D) decisions that appear optimal in one period and sub-optimal at a later time
• E) the implementation lag associated with fiscal policy

---

Definitions:

Galvanic Skin Response (GSR)

A physiological reaction that results in the variation of the electrical conductance of the skin, often used as an indicator of emotional arousal.

Parental Investment

The time and energy parents expend for their offspring’s benefit, including protection, feeding, and teaching.

Electrical Conductivity

A measure of a material's ability to conduct an electric current.

Mate Preference

Criteria or attributes an individual finds desirable in a potential sexual or romantic partner.