The crowding-out effect refers


The crowding-out effect refers to:

A- The inflation rate to rise when the unemployment rate is low.

B- Higher future taxes accompanying budget deficits to reduce private consumption.

C- Increases in private savings to reduce interest rates and, thereby, crowd-out government

D- Higher interest rates and reduced private spending that result from financing federal budget deficits.

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Microeconomics: The crowding-out effect refers
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