Which of the following exemplifies the crowding-out effect? An increase in government spending: A. causes the price level to rise, reducing net exports B. is financed by borrowing, raising interest rates and causing private investment to fall C. is financed by increasing the money supply, reducing interest rates and causing net exports to fall D. causes taxes to rise automatically, reducing consumption spending
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Ответ:
B. is financed by borrowing, raising interest rates and causing private investment to fall.
Ответ:
C
Explanation: