If a Government Finances an Increase in Its Expenditures by Selling

Multiple Choice

If a government finances an increase in its expenditures by selling bonds to the public, then the aggregate demand curve will:

A) not shift.
B) shift out - but not as much as it would if crowding out didn't occur.
C) shift out by the same amount regardless of whether crowding out occurs.
D) shift out more if crowding out occurs.