Crowding Out Occurs by

question 151

Multiple Choice

Crowding out occurs by

• A)causing reduced government purchases of goods and services
• B)reducing the value of the multiplier used for government purchases of goods and services by increasing the interest rate
• C)reducing the value of the multiplier used for government purchases of goods and services by increasing the marginal propensity to consume
• D)reducing the value of the multiplier used for government purchases of goods and services by decreasing the marginal propensity to consume
• E)increasing the value of the multiplier used for government purchases of goods and services by increasing the marginal propensity to consume

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