According to the Classical Model,an Increase in Government Purchases Will

Multiple Choice

According to the classical model,an increase in government purchases will

A) lead to a change in the interest rate that encourages consumers to spend more
B) lead to a change in the interest rate that encourages private businesses to invest more
C) discourage private spending by increasing the price level
D) be partially offset by a decline in consumption and investment spending
E) leave total spending and output unchanged