Question: Question 6 0.33 pts Crowding out occurs when O interest rates increase because the Federal Reserve reduces that economy's money supply. O interest rates increase

 Question 6 0.33 pts Crowding out occurs when O interest rates

Question 6 0.33 pts Crowding out occurs when O interest rates increase because the Federal Reserve reduces that economy's money supply. O interest rates increase as firms spend a larger amount of resources on research and development. O governments must borrow funds which causes interest rates to rise and thus private investment is reduced. O firms borrow more to expand operations which results in an increase in interest rates

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