Crowding out suggests that a. high taxes reduce both consumption and saving. b. increases in consumption are always at the expense of saving. c. increases in government spending may raise the interest rate, thereby reducing investment. d. increases in spending will close a recessionary gap. Fiscal policy is a. the money supply policy that the Fed pursues to achieve particular economic goals. b. the spending and tax policy that the government pursues to achieve particular macroeconomic goals. c. the investment policy that businesses pursue to achieve particular macroeconomic goals. d. the spending and saving policy that consumers pursue to achieve particular macroeconomic goals. e. none of the above