Evidence from the Great Recession Suggests That the Crowding Out

question 48

Multiple Choice

Evidence from the Great Recession suggests that the crowding out effect:

• A) was minimal at that time.
• B) had a very detrimental effect on private savings.
• C) can be quite large in times of recession, and is reinforced with recent research from 2008.
• D) may hold, although the evidence is somewhat contradictory.