The crowding-out effect works through interest rates and it tends to: a.Increase the effectiveness of a tax increase b.Decrease the effectiveness of a tax increase c.Decrease the effectiveness of an increase in government spending d.Increase the effectiveness of an increase in government spending

The crowding-out effect works through interest rates and it tends to: a.Increase the effectiveness of a tax increase b.Decrease the effectiveness of a tax increase c.Decrease the effectiveness of an increase in government spending d.Increase the effectiveness of an increase in government spending

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter18: Debates In Macroeconomics Over The Role And Effects Of Government

Section: Chapter Questions

Problem 1WNG

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Question

The crowding-out effect works through interest
rates and it tends to:
a.lncrease the effectiveness of a tax increase
b.Decrease the effectiveness of a tax increase
c.Decrease the effectiveness of an increase in
government spending
d.Increase the effectiveness of an increase in
government spending

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