The Crowding in of Private Investment Is Associated with

question 61

Multiple Choice

The crowding in of private investment is associated with

• A)increased investment opportunities resulting from a withdrawal of foreign investors
• B)increased investment opportunities resulting from a decline in interest rates
• C)a reduction in the level of government spending
• D)a reduction in corporate income taxes
• E)more favorable business expectations resulting from an increase in aggregate demand induced by increased government borrowing

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