ct one: Households and firms can borrow anyways, even at higher interest rates, so there is no p The central bank can conduct monetary policy to keep interest rates loW Firms can negotiate with lenders to invest at rates that are lower than the going rate Banks can simply refuse to raise their interestaates

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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What can be done to counteract crowding out?
Select one:
O Households and firms can borrow anyways, even at higher interest rates, so there is no problem
O The central bank can conduct monetary policy to keep interest rates low
O Firms can negotiate with lenders to invest at rates that are lower than the going rate
O Banks can simply refuse to raise their interest ates
Transcribed Image Text:What can be done to counteract crowding out? Select one: O Households and firms can borrow anyways, even at higher interest rates, so there is no problem O The central bank can conduct monetary policy to keep interest rates low O Firms can negotiate with lenders to invest at rates that are lower than the going rate O Banks can simply refuse to raise their interest ates
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