The Crowding in of Private Investment Is More Likely to Occur,when

question 139

Multiple Choice

The crowding in of private investment is more likely to occur,when _____.

• A)there is a depreciation of domestic currency
• B)interest rates increase significantly
• C)a contractionary gap exists in an economy
• D)the deficits lower expectations about economic growth
• E)an expansionary gap exists in an economy

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Definitions:

Opportunity Cost

The financial impact of rejecting the most viable alternative during a decision process.

Highest Valued Use

The use of a resource or good that provides the most benefit or value to its user.

Revenue Derived

Pertains to income generated from specific activities or products, indicating a direct source of a company's revenue.

House Painters

Professionals specializing in applying paint and other finishes to buildings primarily for protection and aesthetic purposes.