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  3. Study Set
    Macroeconomics Study Set 43
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    Exam 13: B: Fiscal Policy, Deficits, Surpluses, and Debt
  5. Question
    The Crowding-Out Effect Refers to the Possibility That Deficit Spending
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The Crowding-Out Effect Refers to the Possibility That Deficit Spending

Question 20

Question 20

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The crowding-out effect refers to the possibility that deficit spending may lead people to increase their saving in anticipation of higher future taxes.

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