Multiple Choice
Suppose that there are both multiplier and crowding out effects but not accelerator effects.An increase in government expenditures would definitely
A) shift aggregate demand right by a larger amount than the increase in government expenditures.
B) shift aggregate demand right by the same amount as an the increase in government expenditures.
C) shift aggregate demand right by a smaller amount than the increase in government expenditures.
D) None of the above is correct.
Correct Answer:
Verified
Correct Answer:
Verified
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