Crowding out refers to federal government deficits financed by: a. Borrowing that increases interest rates and thereby

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“Crowding out” refers to federal government deficits financed by:

a. Borrowing that increases interest rates and thereby reduces private spending.

b. Increasing taxes which reduces private spending.

c. The federal government buying foreign debt which reduces the amount of government spending and government programs.

d. Reducing government spending which reduces interest rates.

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Survey Of Economics

ISBN: 9780357720806

11th Edition

Authors: Irvin B. Tucker

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