to counter the crowding-out effect on interest rates caused by the government's deficit spending, the federal reserve can to counter the crowding-out effect on interest rates caused by the government's deficit spending, the federal reserve can cut tax rates. increase the discount rate. increase the reserve requirement. buy bonds through open market operations.
a. Cut tax rates
b. increase tax rate
c. increase government spending
d. increase the interest on the reserve balance rate
e. decrease the entrance on the reserve Brown Street