A Larger Crowding-Out Effect

question 88

Multiple Choice

A larger crowding-out effect:

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

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Definitions:

Distinctive Standpoint

A unique or particular perspective that reflects the specific experiences, values, and beliefs of an individual or group.

Oppression

A system of inequality and injustice where one group exercises power over another through discrimination, marginalization, and exploitation.

Karl Marx

A 19th-century philosopher, economist, and revolutionary socialist whose works are the foundation of the body of thought known as Marxism.

Frederic Engels

A German philosopher, social scientist, and collaborator with Karl Marx, who co-developed Marxist theory and co-authored works such as "The Communist Manifesto."