If the Crowding-Out Effect Is Large,then When Government Spending Increases

question 61

Multiple Choice

If the crowding-out effect is large,then when government spending increases

• A)national income will not increase by much.
• B)investment will not increase by much.
• C)the multiplier will be large.
• D)taxes will automatically increase too.

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Definitions:

Parathyroid Gland

Small endocrine glands in the neck that produce parathyroid hormone, which regulates calcium levels in the blood.

Serum Calcium Levels

The concentration of calcium in the blood, important for bone health, muscle function, and nerve signaling.

Melatonin

A hormone produced by the pineal gland that regulates sleep cycles.

Pineal Gland

The pineal gland is a small endocrine gland in the brain that produces melatonin, which regulates sleep patterns and circadian rhythms.