Crowding out is a phenomenon focused upon most by the macroeconomists of
owding out is a phenomenon focused upon most by the macroeconomists of

a. monetarism
b. Keynesianism
c. real business cycle theory
d. rational expectations

whereby a government deficit interest rates, which in turn private investment spending.

This group also believed that fiscal policy

A. is the only thing that can lower natural unemployment.
B. faces problematic lags in propagating changes throughout the economy.
C. is just as effective in countering recessions as monetary policy.
D. should be used only if the central bank follows a monetary policy rule.
E. can be used most of the time, but monetary policy becomes a better option when velocity is fluctuating.