Multiple Choice
Which of the following best describes crowding in?
A) when current budget deficits allow for future fiscal policy initiatives
B) the potential for government spending to stimulate private investment in an otherwise dead economy
C) the displacement of interest-sensitive private investment that occurs when higher government deficits drive up market interest rates
D) when budget deficits help to increase tax revenues
Correct Answer:

Verified
Correct Answer:
Verified
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Q39: Exhibit 11-2<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4905/.jpg" alt="Exhibit 11-2