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Suppose Government Spending Rises by $120 Billion

Question 16

Multiple Choice

Suppose government spending rises by $120 billion.It follows that if private expenditures


A) rise by $120 billion,complete crowding out exists.
B) fall by $100 billion,incomplete crowding out exists.
C) remain unchanged,complete crowding out exists.
D) rise by more than $120 billion,complete crowding out exists.
E) b and c

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