Crowding Out Will Be Greater

question 10

Multiple Choice

Crowding out will be greater

• A)the less sensitive consumption spending is to changes in the interest rate.
• B)the further equilibrium GDP is below potential GDP.
• C)the more sensitive investment spending is to changes in the interest rate.
• D)if the economy is in recession,rather than at full employment.

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Definitions:

Proposed Rule

An official suggestion for a new regulation or amendment to existing regulations, usually published for public comment before adoption.

Comments

Observations or remarks expressed to convey feedback or information.

Informal Rule Making

The process whereby regulatory agencies create and issue rules and regulations through methods that are less formal than traditional rulemaking processes, often involving public notice and comment.

Efficiency

The economic principle of getting the most output from the least input.