Crowding Out Can Best Be Defined as

Multiple Choice

Crowding out can best be defined as

A) higher interest rates caused by restrictive monetary policy, which reduces investment.
B) higher interest rates caused by restrictive monetary policy, which increases saving and reduces consumption spending.
C) government budget deficits causing a drop in private borrowing because of higher interest rates.
D) government budget deficits causing a drop in interest rates, which reduces private saving.