Refer to the above graph.If the economy was initially in equilibrium at point 3 and interest rates increase by 4 percentage points, then the crowding-out effect would be:
A)$10 billion in investment.
B)$20 billion in investment.
C)$30 billion in investment.
D)$35 billion in investment.

Question

Refer to the above graph.If the economy was initially in equilibrium at point 3 and interest rates increase by 4 percentage points, then the crowding-out effect would be:
A)$10 billion in investment. 
B)$20 billion in investment. 
C)$30 billion in investment. 
D)$35 billion in investment.

Quizplus · Accepted Answer

The Answer of  Refer to the above graph.If the economy was initially in equilibrium at point 3 and interest rates increase by 4 percentage points, then the crowding-out effect would be:
A)$10 billion in investment. 
B)$20 billion in investment. 
C)$30 billion in investment. 
D)$35 billion in investment.

Refer to the Above Graph