The Effect of Crowding Out Over the Long Run Is

question 14

Multiple Choice

The effect of crowding out over the long run is

• A) bad because businesses have less access to loans they need to buy capital.
• B) good because it ensures strong businesses.
• C) bad because it is deflationary in nature.
• D) good because it tends to reduce taxes.

---

Definitions:

Cognitive-behavioral

Pertaining to a therapy approach that addresses dysfunctional emotions, behaviors, and cognitions through a goal-oriented, systematic process.

Psychodynamic Perspective

A psychological approach that emphasizes the systematic study of the psychological forces underlying human behavior, feelings, and emotions and how they might relate to early experience.

Psychoanalysis

A technique of treating psychological disorders and gaining insight into the subconscious mind, developed by Freud, that involves free association, dream interpretation, and analysis of resistance and transference.

Free Association

A psychoanalytic technique where patients are encouraged to verbalize thoughts as they come, without censorship, to uncover unconscious desires or issues.