
Crowding Out
Presentation
•
English
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9th - 12th Grade
•
Practice Problem
•
Hard
Standards-aligned
Jake Ebeling
Used 2+ times
FREE Resource
6 Slides • 2 Questions
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Multiple Choice
Crowding out occurs when investment spending by the private sector decreases as a result of
decreasing interest rates caused by an increase in the supply of government bonds
decreasing interest rates caused by a decrease in the demand for loanable funds
decreasing interest rates caused by an increase in government borrowing
increasing interest rates caused by an increase in government borrowing
increasing interest rates caused by a decrease in government borrowing
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Multiple Choice
The Crowding Out Effect from Government spending is best described as
the rightward shift in AD in response to the decreasing interest rates from contractionary fiscal policy.
the leftward shift in AD in response to the rising interest rates from expansionary fiscal policy
the effect of the president increasing the money supply, which decreases real interest rates, and increases AD.
the effect on the economy of hearing the chairperson of the central bank say that they believe that the economy is in a recession.
the lower exports due to an appreciating dollar versus other currencies.
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