The Decrease in Private Spending That Occurs When the Government

question 90

Multiple Choice

The decrease in private spending that occurs when the government increases spending is called:

• A) crowding out.
• B) a drop in the bucket.
• C) a matter of timing.
• D) a real shock.

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Definitions:

Lafayette's Visit

Refers to the tour of the United States by the Marquis de Lafayette, a French aristocrat and military officer who fought in the American Revolutionary War, celebrated as a hero during his visit in the early 19th century.

Federalists

Members of a political group in the early United States advocating for a strong federal government and the ratification of the Constitution.

Emancipation

The act of being freed from slavery, bondage, or other forms of control or oppression.

Erie Canal

A significant waterway in New York, opened in 1825, that connected the Great Lakes with the Atlantic Ocean, facilitating trade and settlement.