Which one of the following statements is TRUE? Select one: a. “Cowding out” occurs because the Fed increases money supply and lowers interest rate b. “Crowding out” occurs because the Govt increases govt expenditures and this causes private consumption and investment to increase c. Crowding out” occurs because the Govt decreases govt expenditures and this causes private consumption and investment to decrease d. “Crowding out” occurs because the Govt increases govt expenditures and this causes private consumption and investment to decrease
Which one of the following statements is TRUE? Select one: a. “Cowding out” occurs because the Fed increases money supply and lowers interest rate b. “Crowding out” occurs because the Govt increases govt expenditures and this causes private consumption and investment to increase c. Crowding out” occurs because the Govt decreases govt expenditures and this causes private consumption and investment to decrease d. “Crowding out” occurs because the Govt increases govt expenditures and this causes private consumption and investment to decrease
Principles of Macroeconomics (MindTap Course List)
7th Edition
ISBN:9781285165912
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter23: Six Debates Over Macroeconomic Policy
Section: Chapter Questions
Problem 6QCMC
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43)Which one of the following statements is TRUE?
Select one:
a.
“Cowding out” occurs because the Fed increases money supply and lowers interest rate
“Cowding out” occurs because the Fed increases money supply and lowers interest rate
b.
“Crowding out” occurs because the Govt increases govt expenditures and this causes private consumption and investment to increase
“Crowding out” occurs because the Govt increases govt expenditures and this causes private consumption and investment to increase
c.
Crowding out” occurs because the Govt decreases govt expenditures and this causes private consumption and investment to decrease
Crowding out” occurs because the Govt decreases govt expenditures and this causes private consumption and investment to decrease
d.
“Crowding out” occurs because the Govt increases govt expenditures and this causes private consumption and investment to decrease
“Crowding out” occurs because the Govt increases govt expenditures and this causes private consumption and investment to decrease
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