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When the government uses fiscal policy to help the economy crowding out occurs b

ID: 1202297 • Letter: W

Question

When the government uses fiscal policy to help the economy crowding out occurs because

The government must sell bonds which increases interest rates.

The government must sell bonds which decreases interest rates.

The government must buy bonds which increases interest rates.

The government must buy bonds which decreases interest rates.

The government must sell bonds which increases interest rates.

The government must sell bonds which decreases interest rates.

The government must buy bonds which increases interest rates.

The government must buy bonds which decreases interest rates.

Explanation / Answer

A

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