Which of the Following Provides an Example of "Crowding Out

Multiple Choice

Which of the following provides an example of "crowding out"?

A) Increases in government purchases cause more government borrowing, which decreases the funds that are available for private investors to borrow in the loanable funds markets.
B) Increases in the interest rate cause people to spend more.
C) Increases in the money supply lead to higher spending, which crowds out unemployment.
D) Decreases in taxes cause the government to borrow more, which reduces interest rates in the loanable funds markets.