A Crowding-In Effect Occurs

question 134

Multiple Choice

A crowding-in effect occurs

• A)When an increase in government spending leads to an increase in savings.
• B)When increased government borrowing reduces the quantity of funds that businesses can borrow.
• C)That increases investment each time government spending increases.
• D)When the increase in GDP caused by the increased government spending makes businesses see more investment projects as profitable.

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Definitions:

Fraudulent Statement

A false statement knowingly made with the intent to deceive and induce another to act to their detriment.

Good Faith Purchaser

An individual who buys property without knowledge of any prior claims, fraud, or faults in the title, and thus is protected under the law.

Affirmed Contract

An affirmed contract is a contract that has been confirmed or validated by the parties involved or by a court, especially after a challenge of its validity.

Labor Day

An annual holiday celebrating the achievements of workers, observed on the first Monday in September in the United States.