Crowding out is associated with: A. an increase in business investment resulting from an increase in government
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A. an increase in business investment resulting from an increase in government borrowing and higher interest rates.
B. an increase in private savings caused by higher future tax liabilities when government increases borrowing.
C. a reduction in business investment resulting from an increase in government borrowing and higher interest rates.
D. a decrease in government spending caused by a shortage of available credit.
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