Which of the Following Would Occur If the Federal Government

question 137

Multiple Choice

Which of the following would occur if the federal government decided to use a budget surplus to reduce the existing debt?

• A)Crowding out and public sector output would increase.
• B)Crowding out and public sector output would decrease.
• C)Crowding in and private sector output would increase.
• D)Crowding in and private sector output would decrease.

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