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Crowding Out Refers to a Situation Where

Question 26

Multiple Choice

Crowding out refers to a situation where


A) foreign imports successfully compete with domestic firms and crowd them out of the market.
B) ceteris paribus, government's deficit financing tends to reduce the flow of funds to private borrowers as well as to municipal and state governments.
C) corporate bonds are crowded out of the market by municipal bonds.
D) record trade deficits are crowded out by capital inflows.

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