The crowding out effect refers to
A. the presence of the Ricardo-Barro effect.
B. how a cyclical budget deficit changes over the business cycle.
C. government investment crowding out private investment.
D. the wealth effectʹs impact on the aggregate demand curve.
Answer:C
The crowding out effect refers to
A. the presence of the Ricardo-Barro effect. B. how a cyclical budget deficit changes over the business cycle. C. government investment crowding out private investment. D. the wealth effectʹs impact on the aggregate demand curve.