Multiple Choice
Crowding out occurs by
A) causing reduced government purchases of goods and services
B) reducing the value of the multiplier used for government purchases of goods and services by increasing the interest rate
C) reducing the value of the multiplier used for government purchases of goods and services by increasing the marginal propensity to consume
D) reducing the value of the multiplier used for government purchases of goods and services by decreasing the marginal propensity to consume
E) increasing the value of the multiplier used for government purchases of goods and services by increasing the marginal propensity to consume
Correct Answer:
Verified
Correct Answer:
Verified
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