Solved

What Impact Does a Larger Crowding-Out Effect Have on the Magnitude

Question 94

Multiple Choice

What impact does a larger crowding-out effect have on the magnitude of a given fiscal policy's effect on interest rates and investment?


A) It decreases the magnitude of a given fiscal policy's effect on interest rates and increases the magnitude of its effect on investment.
B) It increases the magnitude of a given fiscal policy's effect on interest rates and increases the magnitude of its effect on investment.
C) It decreases the magnitude of a given fiscal policy's effect on interest rates and decreases the magnitude of its effect on investment.
D) It increases the magnitude of a given fiscal policy's effect on interest rates and decreases the magnitude of its effect on investment.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents