Crowding Out Is a Decrease in Private Investment Caused By

question 129

Multiple Choice

Crowding out is a decrease in private investment caused by:

• A) Increased taxation by the government
• B) Increased borrowing by the government
• C) Increased consumer spending by households
• D) Increased exports to buyers in other nations

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Definitions:

Import Quota

A governmental limit on the quantity of a certain type of good that can be imported into a country, used to protect domestic industries.

Trade Protection

Measures implemented by countries to protect their domestic industries from foreign competition, such as tariffs and quotas.

Wealth Transfer

The movement of assets from one party to another, often due to inheritance, gifts, or legal mechanisms like trusts and estates.

Domestic Producers

Refers to individuals or companies that manufacture goods or offer services within their own country.