Which of the following is an example of crowding out?
A) A decrease in the rate of growth of the money supply which causes a decrease in Real GDP.
B) A budget deficit causes an increase in interest rates,which causes a decrease in investment spending.
C) An increase in tariffs which causes a decrease in imports.
D) A decrease in government housing subsidies which causes an increase in private spending on housing.
Correct Answer:
Verified
Q50: Suppose the government increases spending on public
Q51: Some economists argue that a rise in
Q52: If there is complete crowding out as
Q53: Suppose the government increases spending on public
Q54: If an individual pays an additional $0.30
Q56: Which of the following illustrates the effectiveness
Q57: Reductions in private spending as a result
Q58: Suppose the government attempts to stimulate the
Q59: Crowding out results in a decrease in
A)
Q60: 
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents