Crowding in Refers to

question 36

Multiple Choice

Crowding in refers to

• A)A reduction in private sector borrowing caused by increased government spending.
• B)A reduction in private sector borrowing caused by a reduction in government spending.
• C)An increase in private sector borrowing caused by decreased government borrowing.
• D)An increase in private sector borrowing caused by increased government borrowing.

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Definitions:

World Production

encompasses the total output of goods and services by all economies across the globe over a specific period.

Self-Sufficient

The ability to fulfill all of one's needs without relying on external assistance.

Comparative Advantage

The ability of a country, individual, company, or region to produce a particular good or service at a lower opportunity cost than others.

Absolute Advantage

The ability of a country or firm to produce a greater quantity of a good, product, or service than competitors, using the same amount of resources.