4. The term crowding-out effect refers to
(A) the reduction in aggregate supply that results when a monetary expansion causes the interest rate todecrease.
(B). the reduction in aggregate demand that results when a monetary expansion causes the interest rateto decrease.
(C)the reduction in aggregate demand that results when a fiscal expansion causes the interest rate toincrease.
(D) the reduction in aggregate demand that results when a decrease in government spending or anincrease in taxes causes the interest rate to increase.