Crowding Out Results In

question 46

Multiple Choice

Crowding out results in:

• A)higher interest rates, a lower exchange rate and lower net exports.
• B)higher interest rates, a higher exchange rate and lower net exports.
• C)lower interest rates, a lower exchange rate and lower net exports.
• D)lower interest rates, a higher exchange rate and lower net exports.

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Definitions:

Covert Collusion

An implicit or indirect agreement among competitors to fix prices, limit supply, or divide markets, without explicit communication or a formal agreement.

Gentlemen's Agreements

Informal, non-binding agreements between parties based on honor and not legally enforceable.

Formal Cartels

An agreement among competing firms to control prices, production, and market distribution, which is often illegal.

Cartel

An association of manufacturers or suppliers that maintains prices at a high level by restricting competition and output.