Evidence from the Great Recession Suggests That the Crowding Out

question 48

Multiple Choice

Evidence from the Great Recession suggests that the crowding out effect:

• A) was minimal at that time.
• B) had a very detrimental effect on private savings.
• C) can be quite large in times of recession, and is reinforced with recent research from 2008.
• D) may hold, although the evidence is somewhat contradictory.

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Definitions:

Political Corruption

The unlawful misdirection of governmental resources or actions that occurs when government officials abuse their entrusted powers for personal gain.

Governmental Resources

Assets, both financial and material, that are owned or controlled by the government.

Bureaucratic Inefficiency

The occurrence of delays, excessive costs, or lack of responsiveness within an organization or government, often due to complex procedures and red tape.

Disaster Relief

Assistance and resources provided to individuals, communities, and countries in the event of natural or human-made disasters to facilitate recovery.