Crowding out occurs when the government:
A. Increases taxes, thus causing a decrease in consumption.
B. Issues debt, thus making it more difficult for the private sector to issue debt.
C. Prints money, which displaces currency.
D. Does all of the above.
Answer:B
Crowding out occurs when the government:
A. Increases taxes, thus causing a decrease in consumption. B. Issues debt, thus making it more difficult for the private sector to issue debt. C. Prints money, which displaces currency. D. Does all of the above.