Figure 11-2 -In Figure 11-2,if the Government Increases Government Spending to Shift

Figure 11-2
-In Figure 11-2,if the government increases government spending to shift aggregate demand from A D₁ to A D₂,but aggregate demand only increases to AD₃,then it is likely that

A) price increases are preventing the full multiplier effect from taking place.
B) consumers have increased saving to prepare for higher taxes in the future.
C) investment spending has fallen by an amount equal to the increase in government spending.
D) the government also reduced taxes.