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Crowding out is most likely to occur when the federalgovernment a.Runs a surplus and pays off part of the debt. b.Has a balanced budget and

Crowding out is most likely to occur when the federalgovernment

a.Runs a surplus and pays off part of the debt.

b.Has a balanced budget and refinances a portion of the debtthat matures.

c.Runs a deficit and raises taxes to generate more revenue.

d.Runs a deficit and sells bonds to make up the difference.

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