If the Economy Is on the Steep Portion of the AS Curve

question 178

Multiple Choice

If the economy is on the steep portion of the AS curve and government spending increases, ________ crowds out ________.

• A) consumption; planned investment
• B) government spending; planned investment
• C) planned investment; consumption
• D) planned investment; government spending

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Definitions:

Majority Shareholders

Individuals or entities that own more than half of the total shares of a corporation, giving them significant control over company decisions.

Proxies

Authorizations given by shareholders for others to vote on their behalf at company meetings.

Irrevocable

Not able to be changed, reversed, or recovered; final and unalterable.

Withdrawn

The act of pulling back or removing a statement, offer, or proposal previously put forward.