Refer to the Above Graph

question 94

Multiple Choice

Refer to the above graph. If the economy was initially in equilibrium at point 3 and a government deficit makes interest rates increase by 4 percentage points, then the crowding-out effect would be a reduction of:

• A) $10 billion in investment
• B) $20 billion in investment
• C) $30 billion in investment
• D) $6 billion in investment

---

Definitions:

Bipolar

Characterized by two distinct extremes, such as the mood swings seen in bipolar disorder, but also referring to cells with two different poles (e.g., bipolar neurons).

Glial Cell

Non-neuronal cells in the central and peripheral nervous system that provide support and protection for neurons.

Astrocyte

Star-shaped neuroglia cell involved with forming the blood-brain barrier.

Hydrocephaly

A condition characterized by excessive accumulation of cerebrospinal fluid in the brain's ventricles, leading to increased intracranial pressure and head enlargement.