Multiple Choice
-Refer to the above graph.If the economy was initially in equilibrium at point 3 and interest rates increase by 4 percentage points,then the crowding-out effect would be:
A) $10 billion in investment.
B) $20 billion in investment.
C) $30 billion in investment.
D) $35 billion in investment.
Correct Answer:

Verified
Correct Answer:
Verified
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