The Crowding-Out Effect Is More Likely to Dominate the Crowding-In

question 176

Multiple Choice

The crowding-out effect is more likely to dominate the crowding-in effect when investment is relatively

• A)insensitive to interest rates and to GDP.
• B)insensitive to interest rates but sensitive to GDP.
• C)sensitive to interest rates and to GDP.
• D)sensitive to interest rates and insensitive to GDP.

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Definitions:

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