In keynesian theory, if government increases spending that in turn causes an increase in employment and investment by the private sector would be encouraged or " ."

a. crowded in
b. crowded out
c. elbowed out
d. hammered out

A. crowded in

Explanation:

Crowding in occurs when there's a slack in the economy and the government increases its deficit spending to stimulate the economy which causes an increase in employment and investment by the private sector.

Crowding out is when an increase in deficit spending by the government reduces private investment.

I hope my answer helps you.

due to the changes the federal reserve is making the unused reserves will impact the economy by them facing inflation. inflation is definfed as the increase in pricing of a good or service but the decline of the value of money used for purchasing those items. when the economy has a high inflation rate, they are subject to money loss and hurt on the economy.

yes the correct answer was

b.the increased supply will create a surplus.