Investment Is "Crowded Out" by an Increase in Government Spending

Multiple Choice

Investment is "crowded out" by an increase in government spending when

A) an increase in government spending causes output and prices to rise, which in turn causes interest rates to rise.
B) an increase in government spending causes output and prices to fall, which in turn causes interest rates to rise.
C) an increase in government spending causes output and prices to rise, which in turn causes interest rates to fall.
D) an increase in government spending causes output and prices to fall, which in turn causes interest rates to fall.