Which Piece of Evidence Is Consistent with Zero Crowding Out

question 41

Multiple Choice

Which piece of evidence is consistent with zero crowding out?

• A) Government purchases rise and Real GDP does not change.
• B) Government purchases rise and investment spending declines.
• C) Government purchases rise and net exports decline.
• D) Government purchases rise and consumption declines.
• E) none of the above

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Definitions:

Hostile Attribution Bias

The tendency to interpret others' behaviors as having hostile intent, even when the behavior is ambiguous or benign.

Trait Aggressiveness

A personality characteristic that predisposes individuals to engage in aggressive behaviors more frequently and intensely.

Serotonin

A neurotransmitter that contributes to feelings of well-being and happiness, playing a key role in mood regulation.

Aggressive Personality

A behavioral disposition that refers to an individual's propensity to exhibit anger, hostility, or physical aggressiveness.