Which of the Following Correctly Explains the Crowding-Out Effect

question 169

Multiple Choice

Which of the following correctly explains the crowding-out effect?

• A)An increase in government expenditures decreases the interest rate and so increases investment spending.
• B)An increase in government expenditures increases the interest rate and so reduces investment spending.
• C)A decrease in government expenditures increases the interest rate and so increases investment spending.
• D)A decrease in government expenditures decreases the interest rate and so reduces investment spending.

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Definitions:

Oxygen Saturation

A measure of the amount of oxygen carried by the hemoglobin in the red blood cells, typically measured with a pulse oximeter; an important indicator of respiratory function.

Cyanosis

A bluish or purplish discoloration of the skin due to insufficient oxygen in the blood, often indicative of respiratory or circulatory issues.

COPD

Chronic Obstructive Pulmonary Disease; a group of lung diseases including chronic bronchitis and emphysema that obstruct airflow and cause breathing difficulties.

Pulse Oximetry

A non-invasive method used to measure the oxygen saturation level of the blood.