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Refer to the Above Graph

Question 86

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  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. 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.

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