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The crowding-out effect occurs when (a).an expansion of the government's budget raises the interest rate. (b).a contraction of the government's budget raises the interest rate.

The crowding-out effect occurs when

(a).an expansion of the government's budget raises the interest rate.

(b).a contraction of the government's budget raises the interest rate.

(c).an expansionary monetary policy decreases the interest rate.

(d).a contractionary monetary policy increases the interest rate.

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