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:

Negligently

Acting with a lack of care or concern for the consequences of one's actions that a reasonable person would have shown.

Liability

Legal responsibility for one's actions or omissions, which can result in an obligation to compensate any harm caused to others.

Limited Partner

An investor in a partnership who is not involved in the day-to-day operations and whose liability is limited to the amount invested in the business.

Limited Partnership

A partnership consisting of at least one general partner and one or more limited partners, with differing liabilities and investment commitments.