According to the Crowding-Out Effect, a Budget Deficit Will Lead

question 50

Multiple Choice

According to the crowding-out effect, a budget deficit will lead to:

• A)​reduced investment spending and a reduction in long-term economic growth.
• B)​reduced investment spending and an increase in long-term economic growth.
• C)​increased investment spending and a reduction in long-term economic growth.
• D)​increased investment spending and an increase in long-term economic growth.

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Definitions:

Cervical Plexus

A network of nerves in the neck that provides sensory and motor function to parts of the head, neck, and shoulders.

Cervical Nerves

The nerves that emerge from the cervical vertebrae in the neck and are involved in motor and sensory functions of the neck, shoulders, arms, and hands.

Sciatic Nerve

The largest and longest nerve in the human body, running from the lower back through the buttocks and down each leg.

Common Fibular

Nerve involved in motor and sensory functions of the lower leg, particularly in the muscles that flex the foot and toes.