An Illustration of "Crowding Out" in Macroeconomics Is Best Provided

question 123

Multiple Choice

An illustration of "crowding out" in macroeconomics is best provided by

• A)a decrease in government subsidies for low-cost housing causes an increase in private spending on housing.
• B)a decrease in the money supply decreases nominal GDP.
• C)an increase in tariffs causes a decrease in imports.
• D)an increase in the money supply crowds out the issuance of privately held debt.
• E)a fiscal expansion raises interest rates and thereby lowers private investment.

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Definitions:

Mental Health Clinic

A medical facility specializing in the diagnosis, treatment, and prevention of mental health disorders, offering services like counseling, psychiatric evaluations, and therapy.

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