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The Long-Run Opportunity Cost of Government Spending's Crowding Out of Private

Question 147

Multiple Choice

The long-run opportunity cost of government spending's crowding out of private investment


A) equals about 10 percent of GDP
B) is lower interest rates and hence lower interest income for U.S.resource owners
C) results from the corresponding expansionary gap
D) results from the corresponding contractionary gap
E) would be greater if the government's expenditures were devoted to increasing retirement benefits rather than to educating the work force

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