Which Component of Aggregate Expenditure Is Most Subject to Crowding

question 102

Multiple Choice

Which component of aggregate expenditure is most subject to crowding out?

• A)consumption expenditures
• B)investment spending
• C)U.S.imports
• D)government purchases of goods and services
• E)saving

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Definitions:

Confirmation Bias

Searching for (and giving more weight to) information and opinion that confirms what you believe rather than information and opinion to the contrary.

Over-Optimism

A tendency to have an overly positive outlook or expectations, particularly regarding projects or financial forecasts.

Frame Dependence

A psychological theory indicating that people's decisions are influenced by the way choices are framed or presented to them.

Technology Stocks

Shares in companies that operate in the technology sector, including hardware, software, and IT services.