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    Macroeconomics Study Set 47
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    Exam 5: Goods and Financial Markets: the Islm Model
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    An Increase in the Budget Deficit Decreasing the Level of Investment
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An Increase in the Budget Deficit Decreasing the Level of Investment

Question 3

Question 3

Multiple Choice

An increase in the budget deficit decreasing the level of investment is known as:


A) the crowding out of investment.
B) the crowding out of the budget deficit.
C) the crowding in of investment.
D) the crowding out of output.
E) the crowding in of the budget deficit.

Correct Answer:

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