Solved

The Crowding-Out Effect from Government Borrowing to fiNance the Public

Question 240

Multiple Choice

The crowding-out effect from government borrowing to finance the public debt is reduced when


A) the economy is experiencing a period of high inflation.
B) the economy is operating at the full-employment level of output.
C) public investment complements private investment.
D) public investment substitutes for private investment.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions