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The Crowding Out of Private Spending by Government Spending Will

Question 247

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The crowding out of private spending by government spending will be greater the


A) less sensitive consumption,investment,and net exports are to changes in interest rates.
B) more sensitive consumption,investment,and net exports are to changes in interest rates.
C) less sensitive consumption,investment,and net exports are to changes in the price level.
D) more sensitive consumption,investment,and net exports are to changes in the price level.

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