When Used in Connection with Fiscal Policy, the Term "Crowding

Multiple Choice

When used in connection with fiscal policy, the term "crowding out" refers to:

A) the ways that the policy effectively crowds out inflation and unemployment from the economy.
B) a decrease in government spending, which ends up "crowding out" or decreasing aggregate demand.
C) tradeoffs among different types of spending in the economy, which results in more government spending having a smaller impact on total spending.
D) the growth of output as an economy makes full use of its idle resources.