The Crowding-Out Effect Occurs Because an Increase in Government Spending

question 137

Short Answer

The crowding-out effect occurs because an increase in government spending _____ interest rates, causing _____ to fall.

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Definitions:

Reliability Coefficients

Statistics that measure the consistency or stability of scores from a test or measurement tool over time.

Internal Consistency

A measure of how well the items on a test measure the same construct or concept.

Reliability

The consistency and stability of a measurement over multiple trials or observations.

Construct Validity

The degree to which an assessment or tool accurately gauges the theoretical idea or construct it aims to assess.