A Larger Crowding-Out Effect

question 25

Multiple Choice

A larger crowding-out effect:

• A)increases the magnitude of a given fiscal policy's effect on AD and increases the magnitude of its effects on net exports.
• B)increases the magnitude of a given fiscal policy's effect on AD and decreases the magnitude of its effects on net exports.
• C)decreases the magnitude of a given fiscal policy's effect on AD and increases the magnitude of its effects on net exports.
• D)decreases the magnitude of a given fiscal policy's effect on AD and decreases the magnitude of its effects on net exports.

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Definitions:

Steatite Seals

Small carved objects, often from the Indus Valley civilization, made of soft stone (steatite) and used for stamping on clay or sealing documents.

Indus Valley

An ancient civilization that flourished in the Indus River basin, known for its advanced urban planning, architecture, and agricultural practices.

Mesopotamia

An ancient region located in the eastern Mediterranean, bounded by the Tigris and Euphrates rivers, known as one of the cradles of civilization where writing and urban culture first appeared.

Sacrifice Ritual

Ceremonial acts performed in various cultures and religions involving the offering of gifts, and often the life of an animal or symbolic item, to a deity or higher power for the purpose of divine favor or atonement.