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Crowding out refers to the situation in which:

a. government spending increases interest rates and firms invest less.

b. foreigners sell their bonds to buy domestic goods and services

c. government borrowing leads to an increase in taxes

d. An increase in taxes causes people to consume less.

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Yusra Anees
Yusra AneesLv10
2 Feb 2021

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Related questions

"Crowding out" refers to the situation in which:

A) Borrowing by the federal government raises interest rates and causes firms to invest less.

B) Foreigners sell their bonds and purchase U.S. goods and services.

C) Borrowing by the federal government causes states and local governments to lower their taxes.

D) Increased federal taxes to balance the budget cause interest rates to increase and consumer credit to decrease.

The term crowding out refers to a situation where:

a. borrowing by the federal government raises interest rates and causes firms to invest less

b. foreigners sell their bonds and purchase US goods and services

c. borrowing by the federal government causes state and local governments to lower their taxes

d. increased federal taxes to balance the budgets cause interest rates to increase and consumer credit to decrease.

Crowding out refers to the situation in which:

a. foreigners sell their bonds and purchase U.S. goods and services.
b. borrowing by the federal government raises interest rates and causes firms to invest less.
c. borrowing by the federal government cause state and local governments to lower their taxes.
d. increased federal taxes to balance the budget causes interest rates to increase and consumer credit to decrease.

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