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Subject - Economics:

Macroeconomics

MCQ - 79-4089

Question:

The “crowding-out” effect refers to which of the following?

  1. Lower interest rates that result from borrowing to conduct expansionary monetary policy
  2. Higher interest rates that result from borrowing to conduct contractionary fiscal policy
  3. Higher interest rates that result from borrowing to conduct expansionary fiscal policy
  4. Higher interest rates that result from borrowing to conduct contractionary fiscal policy
  5. Lower interest rates due to borrowing to conduct expansionary fiscal policy

Correct Answer: C

Explanation:

High levels of government borrowing increase the interest rate and squeeze private investors out of the investment market.

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269 MCQ for effective preparation of the test of Macroeconomics of Economics section.

Read the MCQ statement: The “crowding-out” effect refers to which of the following? , keenly and apply the method you have learn through the video lessons for Macroeconomics to give the answer. Record your answer and check its correct answer and video explanation for MCQ No. 79-4089.

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Solve the question for MCQ No. and decide which option (A through D/E) is the best choice to answer the MCQ, then click/tap the blue button to view the correct answer and it explanation.

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