10 20 10 11 13 14 3 40 50 60 70 80 90 N 15 16 17 18 1 27 28 29 30 31 32 L A Moving to another question will save this response. Question 16 Which of the following correctly explains the crowding-out effect? a. An increase in government expenditures decreases the interest rate and so increases investment spending. b. A decrease in government expenditures increases the interest rate and so increases investment spending. C. A decrease in government expenditures decreases the interest rate and so reduces investment spending. d. An increase in government expenditures increases the interest rate and so reduces investment spending. A Moving to another question will save this response