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Due to Crowding-Out Effects, Other Things Being Equal

Question 91

Multiple Choice

Due to crowding-out effects, other things being equal:


A) net exports and investment will tend to move in the same direction as a change in government purchases.
B) net exports and investment will tend to move in the opposite direction from a change in government purchases.
C) net exports will tend to move in the same direction as a change in government purchases and investment will tend to move in the opposite direction.
D) net exports will tend to move in the opposite direction as a change in government purchases and investment will tend to move in the same direction.

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