The Crowding-Out Effect Occurs When

question 49

Multiple Choice

The crowding-out effect occurs when:

• A) a. foreign investors crowd out U.S. investors in the market for loanable funds.
• B) a. the federal government's demand for loanable funds due to a higher budget deficit crowds out the private demand in the market for loanable funds.
• C) a. institutional investors crowd out individual investors in the market for loanable funds.
• D) a. firms and municipal governments crowd out households in the market for loanable funds.

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Definitions:

Stockouts

A situation in inventory management when the demand or requirement for an item cannot be fulfilled from the current inventory or stock.

Periodic Systems

An inventory system where inventory counts and cost of goods sold calculations are conducted at specific intervals, such as monthly or yearly.

Inventory Shrinkage

The loss of products between acquisition and sale, often due to theft, damage, or errors in inventory management.

Perpetual Inventory System

A bookkeeping approach that documents inventory movements as they occur, ensuring the inventory balance is always current.