In the classical model with an open economy,an increase in government purchases may not cause complete crowding out,but crowding out will be complete worldwide.

Name: In the classical model with an open economy,an increase in government purchases may not cause complete crowding out,but crowding out will be complete worldwide.
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In an open economy, increased government purchases can lead to higher interest rates, reducing investment domestically and abroad, causing complete crowding out globally.

In the Classical Model with an Open Economy,an Increase in Government