When contractionary fiscal policy leads to _____ private investment because of _____ interest
Rates, the change in investment is called _______ by economists.
A) less; higher; crowding in
B) more; lower; crowding out
C) less; lower; crowding in
D) less; higher; crowding out
Correct Answer:
Verified
Q105: Suppose the government increases government purchases and
Q106: Crowding out occurs when expansionary fiscal policy
Q109: If private sector investment does not respond
Q122: Suppose the economy experiences a recessionary gap.
Q124: Contractionary fiscal policy will lead to a(n)
A)
Q125: A contractionary fiscal policy negates some of
Q126: Which of the following are possible consequences
Q131: The impact of fiscal policy is
A) magnified
Q132: A contractionary fiscal policy is likely to
A)
Q132: Figure 12-4 
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