Due to Crowding-Out Effects, Other Things Being Equal

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