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Question
The crowding-out effect is
A) due to the upward slope of the SRAS when the economy is operating to the right of the LRAS curve.
B) due to the government being more powerful in the markets when there is an increase in government spending.
C) a situation in which expansionary fiscal policy leads to a decrease in planned real investment or planned real consumption in the private sector.
D) only relevant when an inflationary gap is present.
Answer
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Related questions
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