According to the crowding-out effect,a decrease in government spending
A) increases the interest rate and so increases investment spending.
B) increases the interest rate and so decreases investment spending.
C) decreases the interest rate and so increases investment spending.
D) decreases the interest rate and so decreases investment spending.
Correct Answer:
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A)0.2.
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B)1/(1
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B)1 -
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