Which of the following is not a form of crowding out?
A) lower household spending due to higher interest rates
B) lower business spending due to higher interest rates
C) lower net exports due to higher interest rates
D) lower private spending due to higher taxes
E) none of the above; they all represent crowding out
Correct Answer:
Verified
Q111: Discretionary expansionary fiscal policy may lead to
A)all
Q112: Discretionary policy deficits are associated with
A)higher interest
Q113: Crowding out refers to the government's increased
Q114: A deficit resulting from the use of
Q115: Crowding out occurs by
A)causing reduced government purchases
Q117: All of the following are possible implications
Q118: If government deficits stimulate the economy,
A)there is
Q120: Which component of aggregate expenditure is most
Q121: The Social Security program
A)is funded by a
Q134: Crowding out occurs because lower interest rates
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