help please 1). What is the \"crowding out\" effect? A. Consumption spending is

Question

help please

1). What is the "crowding out" effect?

A. Consumption spending is reduced because of spending on capital

B. Capital spending is reduced because people purchase great quantities of consumer goods

C. Private investment is reduced because government borrowing diverts dollars away from private borrowers

D. Savings is insufficient to support the level of capital investment in the economy

Refer to the graph below Capital goods 2017 2012 .E G Consumer goods An increase in productivity is consistent with which of the following movements? A. BF to AG B. AG to BF C. D to C D. C to D E. D to E

Explanation / Answer

1.OPTION C

2. OPTION A

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