Crowding Out Occurs Because the Government Increases the Demand for Loanable

question 106

Multiple Choice

Crowding out occurs because the government increases the demand for loanable funds, drives up interest rates, and I. stops private savers from saving. II. causes investment to fall. III. causes consumption to fall.

• A) I only
• B) II only
• C) II and III only
• D) I and III only

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