The crowding out effect:
A)increases the multiplier effect, so that an increase in taxes reduces income by more.
B)increases the multiplier effect, so that an increase in taxes reduces income by less.
C)decreases the multiplier effect, so that an increase in taxes reduces income by more.
D)decreases the multiplier effect, so that an increase in taxes reduces income by less.

Question

Quizplus · Accepted Answer

The Answer of The crowding out effect:
A)increases the multiplier effect, so that an increase in taxes reduces income by more.
B)increases the multiplier effect, so that an increase in taxes reduces income by less.
C)decreases the multiplier effect, so that an increase in taxes reduces income by more.
D)decreases the multiplier effect, so that an increase in taxes reduces income by less.

The Crowding Out Effect