When Crowding Out Occurs

question 131

Multiple Choice

When crowding out occurs,

• A)private spending replaces public spending
• B)the dollar typically weakens in foreign exchange markets
• C)public spending replaces private spending
• D)it offsets any gains created from the lower interest rates
• E)none of the above

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Definitions:

Bilateral Contract

An agreement between two parties where each party makes a promise to the other, with obligations and benefits on both sides.

Express Contract

A contract in which the terms of the agreement are explicitly stated by the parties, either verbally or in writing.

ESIGN

The Electronic Signatures in Global and National Commerce Act, a federal law that facilitates the use of electronic records and signatures in interstate and foreign commerce.

E-contracts

Legal agreements formed and signed digitally, using electronic means like email or web-based contract management platforms.