If a federal budget deficit causes crowding out, _____
a. real GDP does not increase by as much as the government purchases of goods and services multiplier would predict because the marginal propensity to consume decreases
b. real GDP does not increase by as much as the government purchases of goods and services multiplier would predict because investment decreases
c. interest rates fall, reducing the burden of the debt
d. firms become more willing to invest
e. interest rates fall, so that decreases in investment and government purchases of goods and services exactly offset the expansionary effect of the deficit
b
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Which of the following did not help account for the recent decline in the growth of trash-to-energy plants?
a. a decline in energy prices b. less favorable tax treatment c. a decline in the amount of garbage per capita d. the 1986 tax reform act e. environmental concerns over sites for the plants