Refer to Figure 12.1.Assuming the economy is on the production possibilities curve,crowding out suggests that an increase in government spending financed by internal borrowing would move the economy from point
A)C to point F.
B)C to point A.
C)A to point C.
D)C to point E.

Question

Refer to Figure 12.1.Assuming the economy is on the production possibilities curve,crowding out suggests that an increase in government spending financed by internal borrowing would move the economy from point 
A)C to point F. 
B)C to point A. 
C)A to point C. 
D)C to point E.

Quizplus · Accepted Answer

The Answer of Refer to Figure 12.1.Assuming the economy is on the production possibilities curve,crowding out suggests that an increase in government spending financed by internal borrowing would move the economy from point 
A)C to point F. 
B)C to point A. 
C)A to point C. 
D)C to point E.