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:

Biological

Pertaining to the science of life or living matter in all its forms and phenomena, especially with reference to origin, growth, reproduction, structure, and behavior.

Psychological

Pertaining to the mind or mental processes and how they affect behavior, emotions, and thought patterns.

Sociocultural

This term relates to the combined influence of social and cultural factors on an individual's behavior, attitudes, and perceptions.

Biological Approach

A perspective in psychology that examines behavioral and mental processes through the lens of biological science, emphasizing genetics, neurotransmitters, and the anatomy of the brain.