Economics (M.Phil./Ph.D.) 2015 Panjab University Entrance Exam With Answers

Practice Mode:
44.

Crowding Out occurs when :

A: A change in the rate of interest affects the quantity of money demanded
B: A stimultative fiscal policy pushes up the rate of interest which lowers investment spending
C: A stimulative fiscal policy changes the velocity of money
D: A stimultative fiscal poilicy increase equilibrium output

The answer is: B