Due to Crowding-Out Effects, Other Things Being Equal

question 66

Multiple Choice

Due to crowding-out effects, other things being equal:

• A)net exports and investment will tend to move in the same direction as a change in taxes.
• B)net exports and investment will tend to move in the opposite direction from a change in taxes.
• C)net exports will tend to move in the same direction as a change in taxes and investment will tend to move in the opposite direction.
• D)net exports will tend to move in the opposite direction as a change in taxes and investment will tend to move in the same direction.

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Definitions:

Eastern Europeans

People from the eastern part of Europe, which includes countries such as Poland, Ukraine, Russia, and Romania, among others.

Educated Consumers

Consumers who are well-informed about products, services, and market practices, enabling them to make discerning purchasing decisions.

Marketing Strategies

Comprehensive plans formulated by organizations to reach and persuade potential customers to purchase their products or services.

Consumer Confidence

A measure of how optimistic or pessimistic consumers are regarding their expected financial situation, an indicator of the overall state of the economy.