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The Crowding-Out Effect Is More Likely to Dominate the Crowding-In

Question 176

Multiple Choice

The crowding-out effect is more likely to dominate the crowding-in effect when investment is relatively


A) insensitive to interest rates and to GDP.
B) insensitive to interest rates but sensitive to GDP.
C) sensitive to interest rates and to GDP.
D) sensitive to interest rates and insensitive to GDP.

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