Multiple Choice
Crowding out occurs when
A) investment declines because a budget deficit makes interest rates rise.
B) investment declines because a budget deficit makes interest rates fall.
C) investment increases because a budget surplus makes interest rates rise.
D) investment increases because a budget surplus makes interest rates fall.
Correct Answer:

Verified
Correct Answer:
Verified
Q124: A larger budget deficit<br>A)raises the interest rate
Q161: Which of the following would shift the
Q162: Kathleen is considering expanding her dress shop.If
Q164: Figure 26-5.Figure 26-5 shows the loanable funds
Q165: Figure 26-3.The figure shows two demand-for-loanable-funds curves
Q167: Which of the following events could explain
Q168: If the nominal interest rate is 7
Q169: Suppose government expenditures on goods and services
Q170: Suppose a country repealed its investment tax
Q171: If the government currently has a budget