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Crowding Out Is Associated With

Question 112

Multiple Choice

Crowding out is associated with:


A) a reduction in business investment resulting from an increase in government borrowing and higher interest rates.
B) an increase in business investment resulting from an increase in government borrowing and higher interest rates.
C) an increase in private savings caused by higher future tax liabilities when government increases borrowing.
D) a decrease in government spending caused by a shortage of available credit.

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