Which Piece of Evidence Is Consistent with Zero Crowding Out

question 41

Multiple Choice

Which piece of evidence is consistent with zero crowding out?

• A) Government purchases rise and Real GDP does not change.
• B) Government purchases rise and investment spending declines.
• C) Government purchases rise and net exports decline.
• D) Government purchases rise and consumption declines.
• E) none of the above

---

Definitions:

Eustress

A form of stress that is deemed healthful or giving one a feeling of fulfillment or other positive feelings.

Distress

A state of emotional, mental, or physical strain or suffering.

Selye

Refers to Hans Selye, a pioneering Hungarian-Canadian endocrinologist who formulated the General Adaptation Syndrome, a theory of stress response.

Coping Strategy

Techniques, behaviors, or thought patterns employed by individuals to manage stress, adversity, or hardship.