'Crowding Out' Will Be Smaller If

question 87

Multiple Choice

'Crowding out' will be smaller if:

• A)consumption spending is more sensitive to changes in the interest rate.
• B)equilibrium GDP is further below potential GDP.
• C)investment spending is less sensitive to changes in the interest rate.
• D)the economy is at or above full employment.

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Definitions:

Multiple Correlation

A statistical measure representing the relationship between one dependent variable and two or more independent variables.

Batting Average

A key statistical measure in baseball that represents the ratio of a batter's hits to their at-bats.

Success

The achievement of a goal or objective, often measured by specific criteria or standards in various contexts.

Multiple Correlation

A statistical technique that measures the strength of the relationship between one dependent variable and two or more independent variables.