Crowding Out Is the _____ in Private Spending That Occurs

question 14

Multiple Choice

Crowding out is the _____ in private spending that occurs when government _____ spending.

• A) increase;increases
• B) increase;decreases
• C) decrease;increases
• D) decrease;decreases

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Definitions:

World Bank

An international financial institution that provides loans and grants to the governments of poorer countries for the purpose of pursuing capital projects.

Development Aid

Financial and technical assistance provided by governments or international institutions to support the economic, environmental, social, and political development of developing countries.

Poor Countries

Refers to nations with low levels of economic prosperity, often characterized by low GDP per capita, lack of access to basic services and infrastructure, and high levels of poverty.

Dispute Arbitration

A method of resolving disputes outside the courts, where a neutral third party (the arbitrator) makes a decision after hearing arguments and evidence from both sides.