Multiple Choice
Refer to the above graph.The crowding-out effect would be illustrated by a:
A) shift from curve A to curve B leading to a decrease in investment.
B) shift from curve B to curve A leading to a decrease in interest rates.
C) movement from point 1 to point 2 on curve A leading to a decrease in investment.
D) movement from point 2 to point 1 on curve A leading to a decrease in investment.
Correct Answer:

Verified
Correct Answer:
Verified
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