In the short run, crowding out could be avoided if foreigners:
A)sold the U.S. debt at a higher interest rate.
B)sold the U.S. debt at the existing interest rate.
C)bought the U.S. debt at a higher interest rate.
D)bought the U.S. debt at the existing interest rate.

Question

Quizplus · Accepted Answer

Crowding out can be avoided if foreigners buy U.S. debt at the existing interest rate, as it prevents the need for higher interest rates to attract buyers, which would otherwise reduce private investment.

In the Short Run, Crowding Out Could Be Avoided If