A Smaller Crowding-Out Effect

question 7

Multiple Choice

A smaller crowding-out effect:

• A)increases the magnitude of a given fiscal policy's effect on AD and increases the magnitude of its effects on investment.
• B)increases the magnitude of a given fiscal policy's effect on AD and decreases the magnitude of its effects on investment.
• C)decreases the magnitude of a given fiscal policy's effect on AD and increases the magnitude of its effects on investment.
• D)decreases the magnitude of a given fiscal policy's effect on AD and decreases the magnitude of its effects on investment.

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Definitions:

Lithium

A chemical element used as a medication to treat mood disorders such as bipolar disorder by stabilizing mood and reducing extremes in behavior.

Antidepressant Drugs

Drugs used to treat depression and anxiety.

MAO Inhibitors

A class of medications used to treat depression by inhibiting the activity of monoamine oxidase, an enzyme that breaks down neurotransmitters such as serotonin and dopamine.

Tricyclics

A class of antidepressant drugs that increase the levels of certain chemicals in the brain, helping to improve mood.