The Crowding-Out Effect Is

question 18

Multiple Choice

The crowding-out effect is

• A) the tendency of contractionary fiscal policy to cause an increase in planned investment or planned consumption in the private sector.
• B) the tendency of expansionary fiscal policy to cause an increase in planned investment but not in planned consumption in the private sector.
• C) the tendency of expansionary fiscal policy to cause a decrease in planned investment or planned consumption in the private sector.
• D) the tendency of contractionary fiscal policy to cause an increase in planned investment but a decrease in planned consumption in the private sector.

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Definitions:

Sum of Squares

A statistical measure used in regression analysis and ANOVA that quantifies the variation within data points.

Analysis of Variance

A statistical method used to compare means of three or more samples, testing the hypothesis that the samples are taken from populations with the same mean.

Mean Square

A measure used in variance and regression analysis, representing the sum of squared deviations divided by the degrees of freedom.

One-Way ANOVA

A statistical test used to determine if there are statistically significant differences between the means of three or more independent groups.