Multiple Choice
Due to crowding-out effects,other things being equal,in what direction will net exports and investment tend to move in relation to a change in transfer payments?
A) Net exports will tend to move in the opposite direction from a change in transfer payments, and investment will tend to move in the same direction.
B) Net exports and investment will tend to move in the same direction as a change in transfer payments.
C) Net exports and investment will tend to move in the opposite direction from a change in transfer payments.
D) Net exports will tend to move in the same direction as a change in transfer payments, and investment will tend to move in the opposite direction.
Correct Answer:

Verified
Correct Answer:
Verified
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