In the Classical Model,beginning from an Equilibrium in Which the Government

Multiple Choice

In the classical model,beginning from an equilibrium in which the government is running a budget surplus,

A) this will lower the wage rate
B) the demand for loanable funds will be horizontal
C) an increase in government spending will crowd out more than an equal amount of private spending
D) an increase in government spending will crowd out an equal amount of private spending
E) an increase in government spending will crowd out less than an equal amount of private spending