The "Crowding-Out" Critique Is Based on the Idea That

question 105

Multiple Choice

The "crowding-out" critique is based on the idea that

• A) consumption increases when government spending increases.
• B) government spending may be a substitute for private spending.
• C) time lags crowd out the effects of fiscal policy.
• D) supply-side fiscal policy does not increase total output.
• E) increases in government spending and decreases in taxes are offset by increases in savings.

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Definitions:

Organizational Psychology

A field of psychology that studies human behavior in workplace settings and applies psychological theories and principles to organizations.

Personnel Psychology

A branch of psychology focused on the workplace, dealing with issues such as hiring, assessment, and motivation of employees.

Human Factors Psychology

A field of psychology focusing on designing products and creating work environments that complement the human body and psychological capabilities.

Lower Well-Being

A state characterized by diminished feelings of happiness, satisfaction, and general health.