When the current account is in deficit, the capital account must

Suppose there currently is an inflationary ga

A) Reduce government spending. B) Increase government spending. C) Reduce the nation's aggregate supply. D) nothing

In the crowding-out effect, ______.

a. government purchases increase interest rates, which crowd out investment and consumer spending and shift the aggregate demand curve to the left b. higher interest rates increase investment and consumer spending, which crowd out government purchases and shift the aggregate demand curve to the left c. government purchases lower interest rates, which crowd out unemployment and inflation and shifts the aggregate demand curve to the right d. low interest rates lead to increased government spending, which is crowded out by investment and consumption spending and shifts the aggregate demand curve to the right