The crowding out effect refers to:
A. A decrease in consumption or investment as a result of an increase in government borrowing.
B. A decrease in investment resulting from an increase in consumption and a decrease in savings.
C. A decrease in government spending resulting from a decrease in taxes.
D. A decrease in consumption resulting from an increase in investment.
Answer:A
The crowding out effect refers to:
A. A decrease in consumption or investment as a result of an increase in government borrowing. B. A decrease in investment resulting from an increase in consumption and a decrease in savings. C. A decrease in government spending resulting from a decrease in taxes. D. A decrease in consumption resulting from an increase in investment.