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    Macroeconomics Study Set 43
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    Exam 13: B: Fiscal Policy, Deficits, Surpluses, and Debt
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    The "Crowding-Out Effect" Suggests That
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The "Crowding-Out Effect" Suggests That

Question 152

Question 152

Multiple Choice

The "crowding-out effect" suggests that:


A) the economy's productive capacity will reduce.
B) imports are replacing domestic production.
C) private investment is increasing at the expense of government spending.
D) investment is increasing at the expense of consumption.

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