Crowding Out Is a Phenomenon in Which

question 332

Multiple Choice

Crowding out is a phenomenon in which:

• A) an increase in the government's budget surplus decreases overall investment spending.
• B) overproduction in the goods market leads to a sharp drop in the aggregate price level.
• C) an increase in the government's budget deficit reduces overall investment spending.
• D) an increase in imports reduces overall domestic production.

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