Crowding Out Occurs Because the Government Increases the Demand for Loanable

question 245

Multiple Choice

Crowding out occurs because the government increases the demand for loanable funds,drives up interest rates,and causes:

• A) saving to rise.
• B) saving to fall.
• C) consumption and investment to rise.
• D) consumption and investment to fall.

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Definitions:

Sales Journal

A specialized journal used to record all sales of merchandise on credit.

Daily Posting

The process of recording and updating financial transactions in the books of accounts on a daily basis.

Accounts Receivable

Monetary claims a company holds against customers for supplied goods or services awaiting financial settlement.

Sales Journal

A specialized accounting journal used to keep track of the sales of items on credit.