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:

Approach-Avoidance Conflict

A psychological struggle where a single goal or option has both appealing and repelling aspects, causing conflict.

Attack-Avoidance Conflict

A psychological conflict that occurs when an individual is motivated to approach or attack a goal but also wishes to avoid it due to perceived negative consequences.

Avoidance-Avoidance Conflict

A psychological conflict that occurs when an individual is forced to choose between two equally unattractive options or outcomes.

Coping Abilities

An individual's effective strategies and skills in dealing with stressful or challenging situations.