If an Increase in the Federal Deficit Stimulates an Economy,_____

question 23

Multiple Choice

If an increase in the federal deficit stimulates an economy,_____.

• A)an expansionary gap exists in the economy
• B)the crowding in of private investment takes place
• C)the crowding out of private investment offsets crowding in of private investment
• D)the crowding out and crowding in of private investment cancels each other out
• E)interest rates increase significantly

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