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Question
The crowding-out effect is
A) the tendency of contractionary fiscal policy to cause an increase in planned investment or planned consumption in the U.S. private sector.
B) the tendency of expansionary fiscal policy to cause an increase in planned investment but not in planned consumption in the U.S. private sector.
C) the tendency of expansionary fiscal policy to cause a decrease in planned investment or planned consumption in the U.S. private sector.
D) the tendency of contractionary fiscal policy to cause an increase in planned investment or planned consumption in the U.S. private sector.
Answer
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