The Crowding-Out Effect Indicates That Increased Government Borrowing Will Lead

Multiple Choice

The crowding-out effect indicates that increased government borrowing will lead to:

A) ​an increase in consumption by households and an increase in investment spending by firms.
B) ​an increase in consumption by households and a decrease in investment spending by firms.
C) ​a decrease in consumption by households and an increase in investment spending by firms.
D) ​a decrease in consumption by households and a decrease in investment spending by firms.