Which Would Tend to Reduce the Crowding-Out Effect That Occurs

Multiple Choice

Which would tend to reduce the crowding-out effect that occurs when the Federal government increases its borrowing to finance a deficit?

A) The economy is operating at full employment.
B) The economy is operating at less than full employment.
C) The expenditures fail to contribute to the development of human capital.
D) The deficit financing reduces the profit expectations of business firms.