(Choose 1 answer)
(18063) The term crowding-out effect refers to
A. the reduction in aggregate supply that results when a monetary expansion causes the interest rate to decrease.
B. the reduction in aggregate demand that results when a monetary expansion causes the interest rate to decrease
C. the reduction in aggregate demand that results when a fiscal expansion causes the interest rate to increase.
D. the reduction in aggregate demand that results when a decrease in government spending or an increase in taxes causes the interest rate to increase.
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Exit 35
