Private investments are initially at point 5 on curve B. The crowding-out effect would be illustrated by a movement from point 5 to point:



Refer to the above graph. Private investments are initially at point 5 on curve B. The crowding-out effect would be illustrated by a movement from point 5 to point:





A. 2



B. 3



C. 4



D. 6

C. 4

Economics

You might also like to view...

The commercial banks in Fundland have

Reserves $500 million Loans $3,500 million Deposits $4,000 million Total assets $5,000 million The banks hold no excess reserves. a) Calculate the banks' desired reserve ratio. b) An immigrant arrives in Fundland with $10 million, which she deposits in a bank. How much does the immigrant's bank lend initially?

Economics

What is an optimal decision?

Economics