If We Consider the Potential Effects of a Proposed New

Multiple Choice

If we consider the potential effects of a proposed new government spending program supported by a tax increase, we would expect crowding out to be

A) greater than it would be without the supply-side effects.
B) increased as aggregate real income and output rise in the long run.
C) unaffected by the shifting long-run aggregate supply curve.
D) dependent upon the impact of this tax change on consumer disposable income.
E) greater than if it were not supported by a tax increase.