Expansionary fiscal policy that creates a budget deficit can lead to crowding out. This crowding out effect is exhibited by A. increased government expenditures and decreased investment. B. decreased government expenditures and decreased investment. C. increased taxes and increased investment. D. increased government expenditures and decreased interest rates. Increased government spending crowds out investment due to A. stricter government regulations. B. the existence of interest rate floors. C. higher interest rates. D. an increased money supply.
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Expansionary fiscal policy that creates a budget deficit can lead to crowding out. This crowding out...
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