'Crowding Out' Refers to a Side-Effect of Fiscal Rather Than

question 25

Multiple Choice

'Crowding out' refers to a side-effect of fiscal rather than monetary policy because:

• A) it is based on rising rather than falling interest rates.
• B) it is based on falling rather than rising interest rates.
• C) under monetary policy, private debt doesn't replace public debt.
• D) under monetary policy, the dollar appreciates rather than depreciates.

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Definitions:

Collectivism

The practice or principle of giving a group priority over each individual in it.

Interdependence

A reciprocal relation between interdependent entities (objects or individuals or groups) where they rely on each other to a significant extent.

Independence

The condition or quality of being free from dependence, control, or influence.

Oral Fixation

A concept in psychoanalytic theory suggesting an obsession with oral activities due to unresolved conflicts during the oral stage of psychosexual development.