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Survey of economics
Question: The crowding out effect suggests that  a) Tax are paid primarily out of saving and therefore are ...

Show transcribed image text The crowding out effect suggests that a) Tax are paid primarily out of saving and therefore are not an effective fiscal policy b) Increases in government spending financed through borrowing will increase the interest rate and thereby reduce investment c) It is very difficult to have excessive aggregate spending in our economy d) Consumer and investment spending always vary inversely

The crowding out effect suggests that a) Tax are paid primarily out of saving and therefore are not an effective fiscal policy b) Increases in government spending financed through borrowing will increase the interest rate and thereby reduce investment c) It is very difficult to have excessive aggregate spending in our economy d) Consumer and investment spending always vary inversely