Due to crowding-out effects,other things being equal,in what direction will net exports and investment tend to move in relation to a change in taxes?
A) Net exports will tend to move in the same direction as a change in taxes, and investment will tend to move in the opposite direction.
B) Net exports will tend to move in the opposite direction as a change in taxes, and investment will tend to move in the same direction.
C) Net exports and investment will tend to move in the same direction as a change in taxes.
D) Net exports and investment will tend to move in the opposite direction from a change in taxes.
Correct Answer:
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