Crowding Out Occurs By

Multiple Choice

Crowding out occurs by:

A) causing reduced government purchases of goods and services.
B) reducing the value of the multiplier used for government purchases of goods and services by increasing the interest rate.
C) reducing the value of the multiplier used for government purchases of goods and services by increasing the marginal propensity to consume.
D) reducing the value of the multiplier used for government purchases of goods and services by decreasing the marginal propensity to consume.
E) causing reduced imports of goods and services.