Crowding Out Is a Phenomenon in Which

question 332

Multiple Choice

Crowding out is a phenomenon in which:

• A) an increase in the government's budget surplus decreases overall investment spending.
• B) overproduction in the goods market leads to a sharp drop in the aggregate price level.
• C) an increase in the government's budget deficit reduces overall investment spending.
• D) an increase in imports reduces overall domestic production.

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Definitions:

Analogy

Identifying and discussing the traits of two subjects in relation to each other to offer explanation or insight.

Porcupines

Spiny mammals known for their unique defense mechanism of erecting sharp quills to deter predators.

Hedgehogs

Small, spiny mammals known for their unique protective quills and habits of foraging for food at night.

Analogy

Evaluating two things side by side with the goal of elucidating or illuminating aspects of each.