In the Mainstream View, the Crowding-Out Effect from the Use

question 50

Multiple Choice

In the mainstream view, the crowding-out effect from the use of fiscal policy is:

• A) Small, especially during a recession
• B) Large, especially during a recession
• C) Large because the velocity of money is high
• D) Small because the velocity of money is low

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Definitions:

Duplication of Tasks

The unnecessary repetition of the same work or tasks by multiple people or departments, often leading to inefficiency.