When (If at All)can the Crowding-Out Effect Be Prevented

question 52

Multiple Choice

When (if at all) can the crowding-out effect be prevented?

• A)when the Fed decreases the money supply to accommodate the expansionary fiscal policy
• B)when the real money supply is held constant
• C)when the real balance effect is working
• D)when the Fed allows the real money supply to increase sufficiently to keep the interest rate from rising

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Definitions:

Multiple Geographic Regions

Refers to the operations or presence of a business, organization, or entity across various distinct physical locations or areas around the world.

Gender Roles

The roles, behaviors, activities, and traits deemed suitable for men and women by a particular society, as constructed through social processes.

Emotional Closeness

The feeling of being intimately connected to another individual, often characterized by feelings of affection, understanding, and shared experiences or thoughts.

Independence

The condition of being free from control or influence of another or others, often used in the context of countries, individuals, or statistical variables.