Crowding out refers to
A) an increase of investment caused by an increase in government spending.
B) a decrease in investment caused by an increase in government spending.
C) a decrease in investment caused by a decrease in government spending.
D) an increase of investment caused by a decrease in government spending.
Correct Answer:
Verified
Q122: If the economy is operating below full
Q123: The term "crowding out" refers to increases
Q124: If increases in defense spending by the
Q125: Crowding in leads to
A) higher levels of
Q126: If the economy is operating above full
Q128: Investment is "crowded out" by an increase
Q129: If output is below full employment, we
Q130: Recall the Application about the possibility of
Q131: Long-run money neutrality means that an increase
Q132: How can changes in wages and prices
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents