The Crowding-Out Effect Refers to the Tendency of Expansionary Fiscal

question 177

Multiple Choice

The crowding-out effect refers to the tendency of expansionary fiscal policy to

• A)cause decreases in planned investment or planned consumption.
• B)cause households to save less.
• C)replace low-skilled labor with higher-skilled labor.
• D)cause firms to produce beyond capacity.

---

Definitions:

Serum Sodium

The concentration of sodium in the blood, an essential electrolyte that helps regulate water balance in the body.

Serum Cholesterol

A measure of the total amount of cholesterol in the blood, including low-density lipoprotein (LDL) and high-density lipoprotein (HDL), important for assessing heart disease risk.

Pulmonary Embolism

A blockage in one of the pulmonary arteries in the lungs, typically caused by blood clots that travel from the legs or other parts of the body.

Perfusion

The process of delivering blood to a capillary bed in the biological tissue.