-Refer to the Above Diagram

question 92

Multiple Choice

-Refer to the above diagram.Initially assume that the investment demand curve is I_d1.The crowding-out effect of a large government deficit would be shown as a(n) :

• A) shift of the investment demand curve from I_d1 to I_d2.
• B) leftward shift of the investment demand curve.
• C) increase in the interest rate from 4 percent to 6 percent and a decline in investment spending of $5 billion.
• D) increase in the interest rate from 6 percent to 8 percent and a decline in investment spending of $40 billion.

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Definitions:

Lacrosse

A team sport in which players use a lacrosse stick and a ball, with the objective to score by shooting the ball into an opposing team's goal.

Skills

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Skills

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