Which Statement Best Explains the Crowding-Out Effect

question 87

Multiple Choice

Which statement best explains the crowding-out effect?

• A) An increase in government expenditures decreases the interest rate and so increases investment spending.
• B) An increase in government expenditures increases the interest rate and so reduces investment spending.
• C) A decrease in government expenditures increases the interest rate and so increases investment spending.
• D) A decrease in government expenditures decreases the interest rate and so reduces investment spending.

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Definitions:

Personal Schedule

A timetable for an individual outlining planned activities or tasks, often used for time management.

Multi-day Appointment

An event or engagement scheduled to span across multiple consecutive days, often marked in calendars or planning tools.

Scheduled Period

A designated time frame in which specific tasks or events are planned to occur.

Print Styles

Predetermined setups that specify how a document should appear when printed, including layout, font, and color.