Crowding Out Occurs When Investment Declines Because

question 111

Multiple Choice

Crowding out occurs when investment declines because

• A)a budget deficit makes interest rates rise.
• B)a budget deficit makes interest rates fall.
• C)a budget surplus makes interest rates rise.
• D)a budget surplus makes interest rates fall.

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Definitions:

Inertia Brake

An Inertia Brake is a type of brake system that utilizes the inertia of the vehicle or component (usually in trailers) for activation, providing additional braking force especially during deceleration or when going downhill.

Clutch Brake

Circular disc with friction surfaces on both sides mounted on the transmission input shaft; its purpose is to slow or stop the input shaft during initial shifts to prevent gear clash.

Creep Feature

A functionality in some vehicles that allows them to move very slowly without the driver pressing the accelerator, useful in traffic or for precise maneuvering.