Multiple Choice
When the crowding-out effect of an increase in government purchases is included in the analysis:
A) AD shifts left, but by more than the simple multiplier analysis would imply.
B) AD shifts left, but by less than the simple multiplier analysis would imply.
C) AD shifts right, but by more than the simple multiplier analysis would imply.
D) AD shifts right, but by less than the simple multiplier analysis would imply.
Correct Answer:
Verified
Correct Answer:
Verified
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