When contractionary fiscal policy leads to
A) less private investment because of higher interest rates, the change in investment is called crowding in by economists.
B) more private investment because of lower interest rates, the change in investment is called crowding in by economists.
C) less private investment because of lower interest rates, the change in investment is called crowding in by economists.
D) less private investment because of higher interest rates, the change in investment is called crowding out by economists.
Correct Answer:
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