The Crowding-Out Effect Refers to

question 117

Multiple Choice

The crowding-out effect refers to

• A) an increase in the consumption of domestic goods at the expense of imported goods.
• B) an increase in the consumption of imported goods at the expense of domestic goods.
• C) a decrease in consumption and investment caused by an increase in government borrowing.
• D) a decrease in consumer spending caused by a decrease in consumer confidence.

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Definitions:

Hard Drive

A device for storing and accessing digital data that employs one or several fast-spinning disks covered in magnetic material.

Operating System

The software that manages all the software and hardware on a computer, acting as an intermediary between applications and the computer hardware.

File Name

The designated name given to a file by the user or software, used for identification and organization on a computer system.

Location

The specific place or position where something exists or is situated, often used in geographical, computing, and data context.