How might the crowding out effect be avoided?

By the central bank contracting the money supply at the same time that the fiscal authorities increase spending 

By the central bank expanding the money supply at the same time that the fiscal authorities increase spending ON 

By the fiscal authorities lowering taxes as spending increases.

By the fiscal authorities raising taxes as spending increases

Answer rating: 100% (QA)

The crowding out effect refers to the situation where increased government involvement in a sector of the market economy substantially affects and eve... View the full answer