The crowding-out effect refers to the tendency of
a. the additional borrowing accompanying larger budget deficits to increase interest rates and reduce private spending.
b. higher future taxes accompanying budget deficits to reduce private consumption.
c. the inflation rate to rise when the unemployment rate is low.
d. increases in private savings to reduce interest rates and, thereby, crowd-out government expenditures.
A
Economics
You might also like to view...
"The Case of ATMs" best illustrates the:
A. law of diminishing marginal utility. B. the substitutability of resources. C. idea of derived demand. D. principle of unintended side-effects.
Economics
In the circular flow model, households earn their incomes in the
A. product markets. B. resource markets. C. capitalist markets. D. money markets.
Economics