Crowding out occurs when a. increases in taxes cause interest rates to rise, reducing investment and consumption. b. increases in investment and consumption cause interest rates to rise, reducing the ability of the government to borrow funds. c. decreases in government spending cause interest rates to rise, reducing investment and consumption. d. increases in government spending cause interest rates to fall, reducing investment and consumption. e. increases in government spending cause interest rates to rise, reducing investment and consumption.

The correct answer is option E.

Explanation:

Crowding out effect refers to the situation when an increase in the government spending causes investment spending to decline. When government increases spending it borrows fund. This causes an increase in the demand for loanable funds. As a result, the interest rate increases.

This increase in interest rate causes private investment to decline. this further causes a reduction in consumption.

there are conflicting perceptions. what cannot be denied is that despite a long history of discrimination, they finally chose to bow out in grace and handed over power to the majority. it was a painful experience for them to part with their prerogatives and some chose to leave the country. however, they did decide to bite the bullet and go through the process with minimum obstructions.

presently, whites are still a force to reckon with. they are well educated, have technical and business expertise, they understand imperatives of good governance and are responsible for keeping south africa connected with developed countries. despite a bitter history, they are useful team members of the south african team.

answer; (c) the product does not cost the price shown in the advertisement; i believe this is correct; /// plz check   first good luck