What is the crowding-out effect of the government expenditure multiplier?
It is the

Question

What is the crowding-out effect of the government expenditure multiplier? 
 It is the

Accepted Answer

increase in government borrowing that raises the real interest rate and decreases investment.

Answer

decrease in the government surplus that lowers the real interest rate and decreases investment.

Answer

increase in government borrowing that lowers the real interest rate and decreases saving.

Answer

decrease in the government surplus that raises the real interest rate and decreases consumption expenditure.

Answer

increase in the government deficit that lowers the real interest rate and decreases saving.

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