Which of the Following Is an Example of Crowding Out

question 61

Multiple Choice

Which of the following is an example of crowding out?

• A) A decrease in the rate of growth of the money supply which causes a decrease in Real GDP.
• B) A deficit causes an increase in interest rates, which causes a decrease in investment spending.
• C) An increase in tariffs which causes a decrease in imports.
• D) A decrease in government housing subsidies which causes an increase in private spending on housing.

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Definitions:

Rod-Shaped Structures

Physical formations or constructs that are long, slender, and cylindrical in shape.

Blueprint

A detailed plan or model that guides the making or construction of something.

Mitosis

A cell division process in which a single cell divides to produce two genetically identical daughter cells, crucial for growth, repair, and asexual reproduction.

DNA Replicates

the process by which a DNA molecule creates an exact copy of itself, crucial for cell division and the transmission of genetic information.