Which of the Following Would NOT Lead to Crowding Out

question 17

Multiple Choice

Which of the following would NOT lead to crowding out?

• A) Expansionary fiscal policy depreciates the exchange rate.
• B) Expansionary fiscal policy raises foreign income.
• C) Expansionary fiscal policy raises the money supply.
• D) Expansionary fiscal policy increases net exports.

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Definitions:

Convenience

The quality of being suitable or practical with minimal difficulty or effort; often an important factor in consumer decision-making.

Retail Partner

A business entity that sells products directly to consumers, often collaborating with manufacturers or wholesalers in a supply chain.

Selective Distribution

Lies between the intensive and exclusive distribution strategies; uses a few selected customers in a territory.

Retail Customers

Individuals who purchase goods or services for personal use from retail stores, as opposed to buying for business or resale purposes.