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An Illustration of "Crowding Out" in Macroeconomics Is Best Provided

Question 74

Multiple Choice

An illustration of "crowding out" in macroeconomics is best provided by:


A) an increase in the money supply crowds out the issuance of privately held debt.
B) a decrease in the money supply decreases nominal GDP.
C) a decrease in government subsidies for low- cost housing causes an increase in private spending on housing.
D) a fiscal expansion raises interest rates and thereby lowers private investment.
E) an increase in tariffs causes a decrease in imports.

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