Which Statement Pertains to the Condition of Crowding Out

question 85

Multiple Choice

Which statement pertains to the condition of crowding out?

• A) Government cuts spending by $300 million,resulting in a decrease in consumption by $500 million.
• B) Government cuts taxes,resulting in an increase in investment spending by $270 million.
• C) Government increases spending by $300 million on new highway construction,resulting in an increase in consumption by $500 million.
• D) Government raises taxes by $300 million to finance new spending on highway construction,resulting in a decrease in investment spending by $270 million.

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Definitions:

Structural Unit

A structural unit is the smallest component within a structure that retains the overall characteristics and functionality of the larger structure.

All-or-none Response

A principle that states a neuron either fires at full strength or not at all in response to stimulation.

Action Potential

An action potential is a rapid rise and subsequent fall in voltage or membrane potential across a cellular membrane that is characteristic of excitable cells, such as neurons, as a means of transmission of neural information.

Graded Response

A response that varies in magnitude according to the intensity of the stimulus.