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The Crowding-In Effect Depends on the Sensitivity of Investment to

Question 27

Multiple Choice

The crowding-in effect depends on the sensitivity of investment to


A) GDP, as does the crowding-out effect.
B) interest rates, whereas the crowding-out effect depends on the sensitivity of investment to GDP.
C) interest rates, as does the crowding-out effect.
D) GDP, whereas the crowding-out effect depends on the sensitivity of investment to interest rates.

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