中等ECON-FISC-002
Crowding out of private investment is more complete when:
A. There is a deep recession and a great deal of spare capacity
B. The extra spending is financed entirely from existing fiscal reserves, with no new borrowing
C. The required reserve ratio is 20%
D. The economy is already near full employment✓ 答案
解說
Near full employment, extra demand mainly raises prices and interest rates rather than real output, so private investment is squeezed more. A deep recession leaves more room for output to rise. Using fiscal reserves instead of borrowing weakens the interest-rate channel.