A smaller crowding-out effect:
A)increases the magnitude of a given fiscal policy's effect on interest rates and increases the magnitude of its effects on net exports.
B)increases the magnitude of a given fiscal policy's effect on interest rates and decreases the magnitude of its effects on net exports.
C)decreases the magnitude of a given fiscal policy's effect on interest rates and increases the magnitude of its effects on net exports.
D)decreases the magnitude of a given fiscal policy's effect on interest rates and decreases the magnitude of its effects on net exports.

Question

Quizplus · Accepted Answer

The Answer of A smaller crowding-out effect:
A)increases the magnitude of a given fiscal policy's effect on interest rates and increases the magnitude of its effects on net exports.
B)increases the magnitude of a given fiscal policy's effect on interest rates and decreases the magnitude of its effects on net exports.
C)decreases the magnitude of a given fiscal policy's effect on interest rates and increases the magnitude of its effects on net exports.
D)decreases the magnitude of a given fiscal policy's effect on interest rates and decreases the magnitude of its effects on net exports.

A Smaller Crowding-Out Effect