_____, the lesser will be the effect of an increase in government spending on real GDP.
A) The smaller the crowding-out effect
B) The smaller the percentage of government spending financed by tax increases
C) The larger the government budget surplus
D) The more rapidly money is converted into goods
E) The steeper the aggregate supply curve

Question

Quizplus · Accepted Answer

The Answer is E

_____, the Lesser Will Be the Effect of an Increase