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    Principles of Economics Study Set 8
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    Exam 34: The Influence of Monetary and Fiscal Policy on Aggregate Demand
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    The Crowding-Out Effect Occurs Because an Increase in Government Spending
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The Crowding-Out Effect Occurs Because an Increase in Government Spending

Question 137

Question 137

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The crowding-out effect occurs because an increase in government spending _____ interest rates, causing _____ to fall.

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increases,...

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