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If Increases in Defense Spending by the Government "Crowd Out

Question 125

Multiple Choice

If increases in defense spending by the government "crowd out" private investment spending, this will lead to


A) higher levels of real income and wages in the future.
B) no effects on real income and wages in the future.
C) lower levels of real income and wages in the future.
D) higher levels of real income and lower levels of wages in the future.

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