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MMLU-Pro / 6832 / Crowding out

Problem

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question

Crowding out

category

economics

options

  1. occurs when interest rates fall due to government borrowing.
  2. occurs when consumers and firms spend less offsetting expansionary fiscal policy.
  3. occurs when the government reduces its spending in response to inflation.
  4. is a consequence of contractionary fiscal policy.
  5. is one reason fiscal policy is so effective.
  6. is when expansionary fiscal policy leads to a decrease in interest rates.
  7. happens when the government increases taxes to reduce the budget deficit.
  8. causes the aggregate demand curve to shift to the right.

src

ori_mmlu-high_school_macroeconomics

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Source and history

Official source

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