Which of the Following Is Not True for the Crowding-Out

Which of the following is not true for the crowding-out effect?

A) Federal budget deficits increase interest rates, which reduces investment spending.
B) Crowding out reduces the ability of fiscal policy to combat a recession.
C) If the government spends more on education, Bill Nelson may be forced to spend less on a new home.
D) Crowding out occurs especially when the economy is in a deep recession and people are not spending all the available money.