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    Exam 7: The Economy at Full Employment
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    In a Closed Economy, Crowding Out Occurs When an Increase
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In a Closed Economy, Crowding Out Occurs When an Increase

Question 34

Question 34

Multiple Choice

In a closed economy, crowding out occurs when an increase in government spending results in:


A) a decrease in net exports.
B) an increase in consumption spending.
C) a decrease in investment spending.
D) an increase in public saving.

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