Multiple Choice
Suppose that there is a multiplier effect that is greater than one and that there are no crowding out or investment accelerator effects.Which of the following would shift aggregate demand right by more than the increase in expenditures?
A) an increase in government expenditures.
B) an increase in net exports.
C) an increase in investment spending.
D) All of the above are correct.
Correct Answer:
Verified
Correct Answer:
Verified
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