Crowding Out Results in A(n)

question 319

Multiple Choice

Crowding out results in a(n) :

• A)decrease in private investment spending resulting from government deficit spending.
• B)increase in accumulation of physical capital, which leads to higher economic growth.
• C)increase in private investment spending resulting from government deficit spending.
• D)increase in consumption spending as a result of higher investment spending.

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Definitions:

Venture Capitalist

An investor who provides capital to startup companies and small businesses with potential for long-term growth.

Franchisee

The purchaser of a franchise.