Multiple Choice
The "crowding-out effect" refers to how a government budget deficit
A) shifts only the supply of loanable funds curve leftward.
B) shifts only the demand for loanable funds curve leftward.
C) shifts both the demand for and the supply of loanable funds curves leftward.
D) decreases the equilibrium quantity of investment.
E) increases the equilibrium quantity of investment.
Correct Answer:
Verified
Correct Answer:
Verified
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