If crowding out is a significant problem then when the, Business Economics

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If crowding out is a significant problem then when the

If crowding out is a significant problem, then when the government borrows to increase its spending the real interest rate will ____________ and the equilibrium quantity of loanable funds will ________________.

rise; fall proportionately more

rise; fall proportionately less

fall; rise proportionately more

fall; rise proportionately less

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Business Economics: If crowding out is a significant problem then when the

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