If an Economist Says That Fiscal Policy "Crowds Out," She

question 333

Multiple Choice

If an economist says that fiscal policy "crowds out," she believes that

• A)government spending has caused workers to lose their jobs.
• B)government subsidies have caused a monopoly in an industry.
• C)government borrowing has pushed private borrowers out of the financial market.
• D)tax rates are so high that workers are encouraged to leave the labor market.

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