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If an Economist Says That Fiscal Policy "Crowds Out," She

Question 297

Multiple Choice

If an economist says that fiscal policy "crowds out," she believes that


A) government spending has caused workers to lose their jobs.
B) government subsidies have caused a monopoly in an industry.
C) government borrowing has pushed private borrowers out of the financial market.
D) tax rates are so high that workers are encouraged to leave the labor market.

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