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Basic Question 0 of 13

Suppose that when government spending increases, firms decrease their levels of investment spending. This is an example of ______.

A. crowding out
B. forcing out
C. jamming out

User Contributed Comments 5

User Comment
danlan Know what's crowding out and crowding in.
moma20 crowding out means decrease
crowding in means increase
stevelaz In out, in out, shake it all about, you do the okey cokey and ..........
DariSH It's better to memorize it like this:
Recall: I=PS+T-G;
Then just think: when G is bigger than T, it decreases I by eating a part of PS. This is a crowding out effect.
chcarnes Pretty sure it's jamming out
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Craig Baugh

Learning Outcome Statements

determine and interpret break even and shutdown points of production, as well as how economies and diseconomies of scale affect costs under perfect and imperfect competition

CFA® 2025 Level I Curriculum, Volume 1, Module 1.