1. Per lecture, interest rate crowding out theory is when the government increases the demand to borrow money. Due to this, then interest rate will _____________. When this happens the private sector will be able to borrow ________________.

A. increase; less

B. increase; more

C. decrease; less

D. decrease; more

2. During periods of high inflation, money becomes

A. more useful as a unit of account.

B. more useful as a store of value.

C. more useful as a medium of exchange.

D. less useful as a unit of account

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