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:

Precambrian

The earliest part of Earth's history, spanning from the formation of Earth up to the Cambrian Period, when most major groups of multicellular organisms started to appear.

Hard Parts

Refers to the durable, mineralized, or otherwise resistant parts of an organism, such as bones, shells, and teeth, often preserved as fossils.

Education and Communication

Strategies or processes aimed at imparting knowledge, skills, or competence, and the exchange of information or ideas between people or groups.

Prevention

The action of stopping something from happening or arising, often involving measures taken in advance.