Multiple Choice
Which of the following is an example of crowding out?
A) A decrease in the rate of growth of the money supply which causes a decrease in Real GDP.
B) A budget deficit causes an increase in interest rates,which causes a decrease in investment spending.
C) An increase in tariffs which causes a decrease in imports.
D) A decrease in government housing subsidies which causes an increase in private spending on housing.
Correct Answer:
Verified
Correct Answer:
Verified
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