If the Economy Is Operating at Capacity, an Increase in Government

question 99

Multiple Choice

If the economy is operating at capacity, an increase in government spending will ________ investment.

• A) minimally crowd out
• B) partially crowd out
• C) completely crowd out
• D) have no crowding-out effect on

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Definitions:

Subclavian Artery

A major artery that supplies blood to the arms and, indirectly, to the chest wall and shoulders.

Vertebral Artery

A major artery that supplies blood to the posterior part of the brain, passing through the transverse foramina of the cervical vertebrae.

Great Saphenous Vein

The longest vein in the body, running along the length of the lower leg and thigh, and often used in coronary artery bypass surgery.

Hepatic Portal Vein

A large vein that carries nutrient-rich blood from the digestive organs to the liver for processing.