Question 22 Crowding out is a reduction in private investment caused by government budget deficits, and may partially offset the expansionary effects of fiscal policy. The exact degree of crowding out depends on all of the following except the sensitivity of investment to the real interest rate. the level of the marginal corporate income tax rate how much of the deficit is financed by households, firms, and governments outside of the United States. how much real interest rates increase

ENGR.ECONOMIC ANALYSIS
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Question 22
Crowding out is a reduction in private investment caused by government budget
deficits, and may partially offset the expansionary effects of fiscal policy. The exact
degree of crowding out depends on all of the following except
the sensitivity of investment to the real interest rate.
the level of the marginal corporate income tax rate
how much of the deficit is financed by households, firms, and governments
outside of the United States.
how much real interest rates increase
Transcribed Image Text:Question 22 Crowding out is a reduction in private investment caused by government budget deficits, and may partially offset the expansionary effects of fiscal policy. The exact degree of crowding out depends on all of the following except the sensitivity of investment to the real interest rate. the level of the marginal corporate income tax rate how much of the deficit is financed by households, firms, and governments outside of the United States. how much real interest rates increase
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