Crowding-Out Is the Notion That

Multiple Choice

Crowding-out is the notion that:

A) since tax revenues vary directly with GDP, a rise in the level of GDP will increase the budget surplus and limit expansion.
B) deficit financing will increase the demand for money, increase the interest rate, and reduce the level of investment spending in the economy.
C) the full-employment budget is the best indicator of whether a budget deficit crowds out investment.
D) the actual budget is the best indicator of whether a budget deficit crowds out saving.