Suppose There Are Both Multiplier and Crowding Out Effects but Without

Multiple Choice

Suppose there are both multiplier and crowding out effects but without any accelerator effects. An increase in government expenditures would definitely

A) shift aggregate demand right by a larger amount than the increase in government expenditures.
B) shift aggregate demand right by the same amount as the increase in government expenditures.
C) shift aggregate demand right by a smaller amount than the increase in government expenditures.
D) Any of the above outcomes are possible.