A Larger Crowding-Out Effect

Multiple Choice

A larger crowding-out effect:

A) ​increases the magnitude of a given fiscal policy's effect on interest rates and increases the magnitude of its effects on investment.
B) ​increases the magnitude of a given fiscal policy's effect on interest rates and decreases the magnitude of its effects on investment.
C) ​decreases the magnitude of a given fiscal policy's effect on interest rates and increases the magnitude of its effects on investment.
D) ​decreases the magnitude of a given fiscal policy's effect on interest rates and decreases the magnitude of its effects on investment.