"Crowding Out" Is the Theory That an Increase in Our

question 35

Multiple Choice

"Crowding out" is the theory that an increase in our federal government's budget deficit will likely:

• A)increase the national debt.
• B)increase interest rates.
• C)decrease borrowing by households and businesses
• D)reduce the impact of the spending multiplier implies because of crowding out.
• E)all of these.