The crowding‑out effect describes a scenario in which federal deficit spending causes:
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Business, 10.03.2020 03:09 margaret8800
The crowding‑out effect describes a scenario in which federal deficit spending causes:
A. private spending to increase.
B. decreased interest rates, which reduces private spending.
C. increased interest rates, which reduces private spending.
D. wages to fall, crowding out workers in low‑paying jobs.
Answers: 2
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