The Crowding-In Effect Depends on the Sensitivity of Investment to

question 27

Multiple Choice

The crowding-in effect depends on the sensitivity of investment to

• A)GDP, as does the crowding-out effect.
• B)interest rates, whereas the crowding-out effect depends on the sensitivity of investment to GDP.
• C)interest rates, as does the crowding-out effect.
• D)GDP, whereas the crowding-out effect depends on the sensitivity of investment to interest rates.

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