A larger crowding-out effect:
A) increases the magnitude of a given fiscal policy's effect on AD and increases the magnitude of its effects on investment.
B) increases the magnitude of a given fiscal policy's effect on AD and decreases the magnitude of its effects on investment.
C) decreases the magnitude of a given fiscal policy's effect on AD and increases the magnitude of its effects on investment.
D) decreases the magnitude of a given fiscal policy's effect on AD and decreases the magnitude of its effects on investment.
Correct Answer:
Verified
Q19: Rational expectations theory suggests that government or
Q21: Which of the following is true?
A)When the
Q22: A larger crowding-out effect:
A)increases the magnitude of
Q23: Due to crowding-out effects, other things being
Q25: Due to crowding-out effects, other things being
Q26: A smaller crowding-out effect:
A)increases the magnitude of
Q27: A larger crowding-out effect:
A)increases the magnitude of
Q28: Which of the following is false?
A)Expansionary fiscal
Q29: An increase in government purchases or a
Q67: An increase in government purchases or a
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