Crowding Out

Crowding out:

A) is the decrease in private spending that occurs when government spending increases.
B) occurs when people see that lower taxes today means higher taxes in the future,so they quickly spend the tax cut.
C) is federal government policy on taxes,spending,and borrowing that is designed to influence business fluctuations.
D) is central bank policy on the monetary base,interest rates,and bank reserves that is designed to influence business fluctuations.

Correct Answer:

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