If Counter-Cyclical Fiscal Policy Causes Crowding-Out,which of the Following Statements

Multiple Choice

If counter-cyclical fiscal policy causes crowding-out,which of the following statements is correct?

A) Crowding-out increases the effectiveness of fiscal policy by pushing up interest rates and reducing investment spending.
B) Crowding-out reduces the effectiveness of fiscal policy by pushing up interest rates and reducing investment spending.
C) Crowding-out reduces the effectiveness of fiscal policy by lowering interest rates and reducing investment spending.
D) Crowding-out enhances the effectiveness of fiscal policy by lowering interest rates and increasing investment spending.
E) Crowding-out reduces money demand and thereby reduces the effectiveness of fiscal policy.