Question: The crowding-out effect suggests that: Question 52 options: a) increases in consumption are always at the expense of saving. b) increases in government spending will

The crowding-out effect suggests that:

Question 52 options:

a)

increases in consumption are always at the expense of saving.

b)

increases in government spending will close a recessionary gap.

c)

increases in government spending may raise the interest rate and thereby reduce investment.

d)

high taxes reduce both consumption and saving.

e)

None of the above

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