The Crowding-Out Effect Occurs When Increased Government Expenditures and the Subsequent

The crowding-out effect occurs when increased government expenditures and the subsequent budget deficits cause

A) the money supply to increase, which curtails loans to consumers
B) interest rates to increase, which reduces investment spending
C) inflation, which erodes the purchasing power of the dollar
D) the imports of goods and services to rise, and exports to decline