The Crowding-In Effect Depends on the Fact That Often a Decrease

question 135

Multiple Choice

The crowding-in effect depends on the fact that often a decrease in taxes causes a(n)

• A)decrease in interest rates and an increase in the price of existing bonds.
• B)increase in output, which induces more investment.
• C)increase in interest rates and a decrease in the price of existing bonds.
• D)decrease in interest rates and the price of existing bonds.

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