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:

Business Deal

An agreement or arrangement between two or more parties for the purpose of accomplishing a specific business objective.

International Company

A business organization that operates in multiple countries beyond its original country of incorporation, often engaging in global trade and services.

Maximum Benefits

The highest possible gain or advantage that can be achieved from a particular action or situation.

Listen During

The act of paying close attention to and actively processing information while it is being communicated.