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13. Crowding out occurs because a) low interest rates cause so much private investment that private citizens are denied loans. b) low interest rates cause consumers to spend all their loan funds on the housing market, causing a bubble. c) high interest rates discourage the government from spending in a recession. d) a larger than equilibrium portion of aggregate expenditures is spent on consumption. e) government spending produces high interest rates and firms invest less. 13. Crowding out occurs because a) low interest rates cause so much private investment that private citizens are denied loans. b) low interest rates cause consumers to spend all their loan funds on the housing market, causing a bubble. c) high interest rates discourage the government from spending in a recession. d) a larger than equilibrium portion of aggregate expenditures is spent on consumption. e) government spending produces high interest rates and firms invest less. 13. Crowding out occurs because a) low interest rates cause so much private investment that private citizens are denied loans. b) low interest rates cause consumers to spend all their loan funds on the housing market, causing a bubble. c) high interest rates discourage the government from spending in a recession. d) a larger than equilibrium portion of aggregate expenditures is spent on consumption. e) government spending produces high interest rates and firms invest less. 13. Crowding out occurs because a) low interest rates cause so much private investment that private citizens are denied loans. b) low interest rates cause consumers to spend all their loan funds on the housing market, causing a bubble. c) high interest rates discourage the government from spending in a recession. d) a larger than equilibrium portion of aggregate expenditures is spent on consumption. e) government spending produces high interest rates and firms invest less. 13. Crowding out occurs because a) low interest rates cause so much private investment that private citizens are denied loans. b) low interest rates cause consumers to spend all their loan funds on the housing market, causing a bubble. c) high interest rates discourage the government from spending in a recession. d) a larger than equilibrium portion of aggregate expenditures is spent on consumption. e) government spending produces high interest rates and firms invest less. 13. Crowding out occurs because a) low interest rates cause so much private investment that private citizens are denied loans. b) low interest rates cause consumers to spend all their loan funds on the housing market, causing a bubble. c) high interest rates discourage the government from spending in a recession. d) a larger than equilibrium portion of aggregate expenditures is spent on consumption. e) government spending produces high interest rates and firms invest less. 13. Crowding out occurs because a) low interest rates cause so much private investment that private citizens are denied loans. b) low interest rates cause consumers to spend all their loan funds on the housing market, causing a bubble. c) high interest rates discourage the government from spending in a recession. d) a larger than equilibrium portion of aggregate expenditures is spent on consumption. e) government spending produces high interest rates and firms invest less. 13. Crowding out occurs because a) low interest rates cause so much private investment that private citizens are denied loans. b) low interest rates cause consumers to spend all their loan funds on the housing market, causing a bubble. c) high interest rates discourage the government from spending in a recession. d) a larger than equilibrium portion of aggregate expenditures is spent on consumption. e) government spending produces high interest rates and firms invest less. 13. Crowding out occurs because a) low interest rates cause so much private investment that private citizens are denied loans. b) low interest rates cause consumers to spend all their loan funds on the housing market, causing a bubble. c) high interest rates discourage the government from spending in a recession. d) a larger than equilibrium portion of aggregate expenditures is spent on consumption. e) government spending produces high interest rates and firms invest less. 13. Crowding out occurs because a) low interest rates cause so much private investment that private citizens are denied loans. b) low interest rates cause consumers to spend all their loan funds on the housing market, causing a bubble. c) high interest rates discourage the government from spending in a recession. d) a larger than equilibrium portion of aggregate expenditures is spent on consumption. e) government spending produces high interest rates and firms invest less. 13. Crowding out occurs because a) low interest rates cause so much private investment that private citizens are denied loans. b) low interest rates cause consumers to spend all their loan funds on the housing market, causing a bubble. c) high interest rates discourage the government from spending in a recession. d) a larger than equilibrium portion of aggregate expenditures is spent on consumption. e) government spending produces high interest rates and firms invest less. 13. Crowding out occurs because a) low interest rates cause so much private investment that private citizens are denied loans. b) low interest rates cause consumers to spend all their loan funds on the housing market, causing a bubble. c) high interest rates discourage the government from spending in a recession. d) a larger than equilibrium portion of aggregate expenditures is spent on consumption. e) government spending produces high interest rates and firms invest less. 13. Crowding out occurs because a) low interest rates cause so much private investment that private citizens are denied loans. b) low interest rates cause consumers to spend all their loan funds on the housing market, causing a bubble. c) high interest rates discourage the government from spending in a recession. d) a larger than equilibrium portion of aggregate expenditures is spent on consumption. e) government spending produces high interest rates and firms invest less. 13. Crowding out occurs because a) low interest rates cause so much private investment that private citizens are denied loans. b) low interest rates cause consumers to spend all their loan funds on the housing market, causing a bubble. c) high interest rates discourage the government from spending in a recession. d) a larger than equilibrium portion of aggregate expenditures is spent on consumption. e) government spending produces high interest rates and firms invest less. 13. Crowding out occurs because a) low interest rates cause so much private investment that private citizens are denied loans. b) low interest rates cause consumers to spend all their loan funds on the housing market, causing a bubble. c) high interest rates discourage the government from spending in a recession. d) a larger than equilibrium portion of aggregate expenditures is spent on consumption. e) government spending produces high interest rates and firms invest less. 13. Crowding out occurs because a) low interest rates cause so much private investment that private citizens are denied loans. b) low interest rates cause consumers to spend all their loan funds on the housing market, causing a bubble. c) high interest rates discourage the government from spending in a recession. d) a larger than equilibrium portion of aggregate expenditures is spent on consumption. e) government spending produces high interest rates and firms invest less.

Answer

Small Tutor Aaron Lee

Answer is E because increased government spending makes the economy grow, consume...