Which of the following statements about the effects of an increase in government purchases is most accurate?
A) In the classical model,it will cause complete crowding out.In the short-run macro model,crowding out will be incomplete.
B) In the classical model,it will cause incomplete crowding out.In the short-run macro model,crowding out will be complete.
C) Crowding out will be complete in both the classical and short-run macro model.
D) Crowding out will be incomplete in both the classical and short-run macro model.
E) In the classical model,the increase in government spending will lead to a decrease in investment spending and autonomous consumption.In the short-run macro model,it will not.
Correct Answer:
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