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If Government Deficits Stimulate the Private Economy

Question 68

Multiple Choice

If government deficits stimulate the private economy:


A) 'crowding out' must be zero.
B) investment may rise.
C) 'crowding out' is more than offset by increases in investment demand.
D) 'crowding out' and 'crowding in' cancel each other out.
E) interest rates must fall.

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