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The Crowding-Out Effect Refers to

Question 117

Multiple Choice

The crowding-out effect refers to


A) an increase in the consumption of domestic goods at the expense of imported goods.
B) an increase in the consumption of imported goods at the expense of domestic goods.
C) a decrease in consumption and investment caused by an increase in government borrowing.
D) a decrease in consumer spending caused by a decrease in consumer confidence.

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