Which of the Following Is an Example of Crowding Out

question 54

Multiple Choice

Which of the following is an example of crowding out?

• A)An increase in government spending increases interest rates, causing investment to fall.
• B)A decrease in private savings increases interest rates, causing investment to fall.
• C)A decrease in the money supply increases interest rates, causing investment to fall.
• D)An increase in taxes increases interest rates, causing investment to fall.

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Definitions:

Alcoholics Anonymous (AA)

A worldwide fellowship program for individuals struggling with alcoholism, offering a path to sobriety through shared experiences and mutual support.

Abstinence Violation Effect

What happens when a person attempting to abstain from alcohol use ingests alcohol and then endures conflict and guilt by making an internal attribution to explain why he or she drank, thereby making him or her more likely to continue drinking in order to cope with the self-blame and guilt.

High Relapse Rate

The tendency for a condition or behavior to return after an apparent recovery, often noted in the context of addiction or mental health.

Internet Gaming Disorder

Persistent engagement and preoccupation with Internet and video gaming, with symptoms of tolerance, withdrawal, loss of interest in other activities, and clinically significant impairment or distress.