Those Economists Who Argue That a Significant Amount of Crowding

Multiple Choice

Those economists who argue that a significant amount of crowding out exists believe that the impact of expansionary fiscal policy will be _________________ by the crowding out.Their reasoning is that if the government increases purchases,and finances that spending by borrowing money,spending in the private sector will _______________,leading ultimately to _____________ in aggregate demand.

A) strengthened; fall; little or no change
B) strengthened; rise; a significant rise
C) weakened; fall; little or no change
D) weakened; rise; a significant rise