1. Crowding out occurs because government borrowing can: increase the inflation rate increase interest rates. () decrease interest rates. D) decrease the inflation rate. 2. During a recession, government spending on supplemental nutrition assistance (SNAP, or " food stamps"): rises, which is procyclical. B rises, which is countercyclical. () falls, which is procyclical. D) falls, which is countercyclical. 3. Automatic stabilizers are: A) procyclical. B discretionary . C monetary policies. D) countercyclical. 4. deficits are always smaller then deficits. A) Actual; primary structural B) Primary structural; structural C) Structural; primary structural D) Actual; structural