Question: 10 Interest rate (%) 8 0 B 50 10 20 30 40 Investment (billions of dollars) Refer to the above graph. If the economy was

10 Interest rate (%) 8 0 B 50 10 20 30 40 Investment (billions of dollars) Refer to the above graph. If the economy was initially in equilibrium at point 3 and interest rates increase by 4 percentage points, then the crowding-out effect would be: Multiple Choice $10 billion in investment. 5 SIL t.pdf an r up 3

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