Crowding-Out Results From

question 55

Multiple Choice

Crowding-out results from:

• A) An increase in the supply of money and a decrease in the velocity of money
• B) A decrease in the supply of money and an increase in the velocity of money
• C) The inverse relationship between the supply of money and nominal GDP
• D) Deficit financing which increases interest rates and reduces investment

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Definitions:

Operation Indicated

The mathematical operation (such as addition, subtraction, multiplication, or division) suggested by the context of a problem or equation.

Percentage

A portion or share expressed as a fraction of 100.

Net Amount

The final amount remaining after all deductions, like taxes and fees, have been subtracted from the gross amount.

Collect Like Terms

A mathematical process to simplify algebraic expressions by combining constants and variables that are the same.