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    Economics Principles and Policy Study Set 2
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    Exam 32: Budget Deficits in the Short and Long Run
  5. Question
    The Crowding-Out Effect of Higher Interest Rates Can Be Avoided
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The Crowding-Out Effect of Higher Interest Rates Can Be Avoided

Question 3

Question 3

Multiple Choice

The crowding-out effect of higher interest rates can be avoided by


A) expansionary monetary policy.
B) expansionary fiscal policy.
C) contractionary monetary policy.
D) decreasing taxes.

Correct Answer:

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