The Reduction in Private Borrowing That Is Caused by an Increase

question 124

Multiple Choice

The reduction in private borrowing that is caused by an increase in government borrowing is called:

• A) the crowding out effect.
• B) surplus investment.
• C) the dissaving effect.
• D) the savings effect.

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Definitions:

Cost Formula

A mathematical expression or method used to calculate the total cost of production or service, often considering both variable and fixed expenses.

Physical Flow

The actual movement and transfer of goods or materials through a production process or supply chain.

FIFO

"First In, First Out," a method used in inventory management and accounting where the goods first added to inventory are the first to be sold.

Inventory Cost Formula

The method used to determine the cost of goods available for sale or the cost of goods sold, such as FIFO (First-In, First-Out), LIFO (Last-In, First-Out), or Average Cost.