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Classical economists claim that which of the following is true?

Classical economists claim that which of the following is true?

A. Government expenditures usually spur economic growth, especially during an economic depression.

B. Crowding out exists but its effects are unimportant relative to the benefits of government spending.

C. It is impossible for crowding out to occur because government expenditures usually help.

D. Private expenditures are reduced by government expenditures because of the crowding out effect.




Leave an answer

Leave an answer

1 Answer

  1. Private expenditures are reduced by government expenditures because of the crowding out effect.

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