Crowding Out Is Reduction In

question 123

Multiple Choice

Crowding out is reduction in:

• A) private borrowing that is caused by an increase in government borrowing.
• B) government borrowing that is caused by an increase in private borrowing.
• C) private borrowing that is caused by an increase in corporate borrowing.
• D) corporate borrowing that is caused by an increase in private borrowing.

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Definitions:

What We Know

A phrase indicating the extent of knowledge and understanding that has been established on a particular subject up to the current time.

Opportunity Cost

The loss of potential gain from other alternatives when one alternative is chosen.

Social Status

The position or rank of a person or group within the social hierarchy.

Environmental Factor

Any external influence, including social, cultural, and physical environments, that can affect an individual’s development and behavior.