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If the Fed decreases the money supply at the same time the federal government increases government s

NYC

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If the Fed decreases the money supply at the same time the federal government increases government s

If the Fed decreases the money supply at the same time the federal government increases government spending, the crowding-out effect:
A) could either increase or decrease depending on the sensitivity of planned investment to the interest rate.
B) will be reduced.
C) will be increased.
D) will not be affected.

Textbook

Principles of Macroeconomics

Principles of Macroeconomics

Edition: 11^th

Authors: Case, Fair, Oster

Read 125 times

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