If crowding out only partially offsets the effects of a tax cut, which of the following changes in interest rates and GDP are most likely to occur.

If crowding out only partially offsets the effects of a tax cut, which of the following changes in interest rates and GDP are most likely to occur.


Interest Rates GDP


a. Increase Increase
b. Increase Remain unchanged
c. Increase Decrease
d. Remain unchanged Increase
e. Decrease Decrease







Answer: A


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