Crowding out occurs when a. increases in taxes cause interest rates to rise, reducing investment and consumption. b. increases in investment and consumption cause interest rates to rise, reducing the ability of the government to borrow funds. c. decreases in government spending cause interest rates to rise, reducing investment and consumption. d. increases in government spending cause interest rates to fall, reducing investment and consumption. e. increases in government spending cause interest rates to rise, reducing investment and consumption.

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