Which of the following is not "crowded out" by higher interest rates as a result of expansionary fiscal policy?
A)household consumption
B)private investment
C)net exports
D)government spending
E)household investment

Question

Quizplus · Accepted Answer

Expansionary fiscal policy can lead to higher interest rates, which can reduce private investment, net exports, and household consumption. However, government spending is not crowded out by higher interest rates as it is directly increased by the policy. Household investment is not an option in this question, but it would also be crowded out by higher interest rates.

Which of the Following Is Not "Crowded Out" by Higher