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MMLU / Crowding out

Problem

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question

Crowding out

choices

  1. is one reason fiscal policy is so effective.
  2. occurs when interest rates fall due to government borrowing.
  3. occurs when consumers and firms spend less offsetting expansionary fiscal policy.
  4. causes the aggregate demand curve to shift to the right.

subject

high_school_macroeconomics

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Source and history

Official source

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