Multiple Choice
Crowding-out occurs when
A) supply-side fiscal policy does not increase total output.
B) consumption increases when government spending increases.
C) private spending falls in response to increases in government spending.
D) time lags crowd out the effects of fiscal policy.
E) increases in government spending and decreases in taxes are offset by increases in savings.
Correct Answer:

Verified
Correct Answer:
Verified
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