单选题 According to the crowding-out model, persistent, large government budget deficits are most likely to be associated with a(n); A. increase in net exports. B. decrease in private spending. C. decrease in the real rate of interest.

【正确答案】 B

【答案解析】The crowding-out model suggests that budget deficits are associated with higher real interest rates, a decline in private investment, an inflow of capital from abroad, appreciation of the domestic currency, and a decline in net exports.