The Financing of a Government Deficit Increases Interest Rates And

question 88

Multiple Choice

The financing of a government deficit increases interest rates and, as a result, reduces investment spending.This statement describes

• A)the supply-side effects of fiscal policy.
• B)built-in stability.
• C)the crowding-out effect.
• D)the net export effect.

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Definitions:

Fundus

The upper part of a hollow organ, like the stomach or uterus, which is often opposite from the opening.

Cardia

The section of the stomach where the esophagus leads into it, involved in controlling the passage of food and preventing acid reflux.

Body

Generally refers to the physical structure of a living organism, comprising of various systems and organs that work together to sustain life.

Muscularis Externa

A layer of muscle in the walls of various organs, including the stomach and intestines, responsible for movement.