Crowding Out Is the Idea That an Increase in Government

question 99

True/False

Crowding out is the idea that an increase in government spending may cause a reduction in private sector spending.
Crowding out occurs when a reduction in private sector borrowing (and spending)is caused by increased government borrowing.

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Definitions:

Schachter's Study

A series of experiments by Stanley Schachter that explored the effects of fear and affiliation, illustrating how anxiety can lead to a desire for social companionship.

People's Reactions

The responses or behaviors exhibited by individuals in response to specific stimuli or situations.

Deviation

A measure of the difference between observed values and the expected value.

Asch

Refers to Solomon Asch, known for his research on conformity, including the famous Asch conformity experiments.