If the Crowding-Out Effect Is at Its Maximum Strength, It

question 97

Multiple Choice

If the crowding-out effect is at its maximum strength, it follows that an increase in government spending would:

• A) Cause aggregate demand and GDP to increase
• B) Cause aggregate demand and GDP to decrease
• C) Not affect aggregate demand and GDP
• D) Not cause the budget deficit to increase

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Definitions:

Holland Scale

A theoretical framework used in career counseling to match individuals' preferences, interests, and personality types with compatible career paths.

Oregon

A state in the Pacific Northwest region on the West Coast of the United States.

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Assessment tools designed to evaluate an individual's preferences and interests in various vocational areas to guide career choice.

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A career trajectory that involves pursuits or jobs that are unconventional, exciting, and entail a certain degree of risk or unpredictability.