Crowding Out Occurs When Investment Declines Because

question 111

Multiple Choice

Crowding out occurs when investment declines because

• A)a budget deficit makes interest rates rise.
• B)a budget deficit makes interest rates fall.
• C)a budget surplus makes interest rates rise.
• D)a budget surplus makes interest rates fall.

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Definitions:

Taste Aversions

A learned response where an individual develops a dislike or avoidance of a food after a negative experience, such as illness, associated with it.

Operant Conditioning

An instruction technique whereby the power of a conduct is adjusted by positive reinforcement or punitive measures.

Skinner

B.F. Skinner was an influential American psychologist known for his work on behaviorism and developing the theory of operant conditioning.

Thorndike

An American psychologist famous for his work on learning theory and the law of effect, which states that behaviors followed by positive outcomes are likely to recur.