Government spending is a leakage out of the circular flow of income and spending.

The crowding out effect refers to the ________ from ________ in the government's budget deficit

A) decrease in employment; an increase B) decrease in investment; an increase C) increase in investment; an increase D) increase in consumption; an increase E) decrease in consumption; a decrease

Exchange rate pegs are popular with developing countries because they increase credibility

Indicate whether the statement is true or false