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Answer the Next Two Questions Based Upon the Following Diagram

Question 36

Multiple Choice

Answer the next two questions based upon the following diagram.
Answer the next two questions based upon the following diagram.    -If government deficits do raise the interest rate, the extent of the crowding out effect is: A)  the decrease in interest rates from i<sub>2</sub> to i<sub>1</sub> B)  the decrease in investment spending from I<sub>1</sub> to I<sub>2</sub> C)  the amount of investment from 0 to I<sub>1</sub> D)  the S curve
-If government deficits do raise the interest rate, the extent of the crowding out effect is:


A) the decrease in interest rates from i2 to i1
B) the decrease in investment spending from I1 to I2
C) the amount of investment from 0 to I1
D) the S curve

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