Unnecessary debt - like debt on credit and store charge cards - can destroy your
investment opportunities. Why?
A. Because you pay more in interest on your debt than you could make on
your investments.
B. Because you'll forget to invest.
C. Because the credit card and loan companies will go out of business if you
don't use them
D. None of the above.

Crowding out is a phenomenon focused upon most by the macroeconomists of whereby a government deficit interest rates, which in turn private investment spending. this group also believed that fiscal policy is the only thing that can lower natural unemployment. is just as effective in countering recessions as monetary policy. can be used most of the time, but monetary policy becomes a better option when velocity is fluctuating. should be used only if the central bank follows a monetary policy rule. faces problematic lags in propagating changes throughout the economy.