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    Foundations of Macroeconomics Study Set 2
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    The Crowding-Out Effect Is the Tendency for
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The Crowding-Out Effect Is the Tendency for

Question 13

Question 13

Multiple Choice

The crowding-out effect is the tendency for


A) higher government budget deficits to increase total savings.
B) higher private savings to decrease government budget surpluses.
C) lower private saving to decrease investment.
D) higher government budget deficits to decrease investment.
E) lower private saving to increase the budget deficit.

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