Progressives Respond to the Crowding Out Analysis by Arguing That

Multiple Choice

Progressives respond to the crowding out analysis by arguing that

A) In a recession, increased deficit spending does not raise interest rates
B) Weak investment during economic recoveries with high deficit spending occurs despite the deficit not because of it
C) If the deficit spending raises incomes, the rising demand will lead to higher investment spending even if interest rates do rise.
D) All of the above