Multiple Choice
A larger crowding-out effect:
A) increases the magnitude of a given fiscal policy's effect on real output in the short run and increases the magnitude of its effects on investment.
B) increases the magnitude of a given fiscal policy's effect on real output in the short run and decreases the magnitude of its effects on investment.
C) decreases the magnitude of a given fiscal policy's effect on real output in the short run and increases the magnitude of its effects on investment.
D) decreases the magnitude of a given fiscal policy's effect on real output in the short run and decreases the magnitude of its effects on investment.
Correct Answer:
Verified
Correct Answer:
Verified
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