Which of the following is "crowded out" by higher interest rates that can be the result of expansionary fiscal policy?
A)consumption
B)private investment
C)net exports
D)All of the above are crowded out by higher interest rates.

Question

Quizplus · Accepted Answer

Higher interest rates can lead to a decrease in consumption, private investment, and net exports, as borrowing costs rise and the currency may appreciate, making exports more expensive.

Which of the Following Is "Crowded Out" by Higher Interest