Multiple Choice
Which of the following is an example of crowding out?
A) A decrease in the rate of growth of the stock of money decreases GDP.
B) A deficit causes an increase in interest rates, which causes a decrease in investment spending.
C) An increase in tariffs causes a decrease in imports.
D) A decrease in government housing subsidies causes an increase in private spending on housing.
Correct Answer:
Verified
Correct Answer:
Verified
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