The Phenomenon of Crowding-Out Suggests That the Positive Impact of Budget

question 19

Multiple Choice

The phenomenon of crowding-out suggests that the positive impact of budget deficits on economic activity are reduced by ________.

• A)the impact produced by government spending on the environment
• B)an increase in national savings
• C)the interest rate effects associated with federal deficits
• D)the increase in pork barrel projects deficit spending entails