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

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Chapter23: Six Debates Over Macroeconomic Policy
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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
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
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