Which of the following policy actions would unambiguously reduce the supply of loanable funds and crowd out
Question:
Which of the following policy actions would unambiguously reduce the supply of loanable funds and crowd out investment?
a. an increase in taxes and a decrease in government spending
b. a decrease in taxes together with an increase in government spending
c. an increase in both taxes and government spending
d. a decrease in both taxes and government spending
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The supply of loanable funds is influenced by various factors including government fiscal policies In the context of your question lets analyze the op...View the full answer
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