The Crowding-Out Effect Refers to the Possibility That an

Multiple Choice

The crowding-out effect refers to the possibility that an

A) increase in the money supply will result in a decline in taxes.
B) increase in consumption spending will crowd out government spending.
C) increase in private savings will crowd out the taxable income of households.
D) increase in government borrowing will result in higher interest rates, which will crowd out private investment and consumption.