A Smaller Crowding-Out Effect

question 42

Multiple Choice

A smaller 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:

Superposition

A principle in geology that states in an undisturbed sequence of rocks, layers on the bottom are older than those above them.

Original Horizontality

A rule indicating that sediment layers are initially laid down in a horizontal manner due to the force of gravity.

Siccar Point

A location in Scotland famous for its unconformity, visible as an angular discordance between layers of sedimentary rock, demonstrating deep geological time and processes.

Unconformity

A surface of contact between two groups of unconformable strata, indicating a period of erosion or non-deposition in the geological record.