Multiple Choice
What impact does a larger crowding-out effect have on the magnitude of a given fiscal policy's effect on real output in the short run and net exports?
A) It increases the magnitude of a given fiscal policy's effect on real output in the short run and increases the magnitude of its effect on net exports.
B) It increases the magnitude of a given fiscal policy's effect on real output in the short run and decreases the magnitude of its effect on net exports.
C) It decreases the magnitude of a given fiscal policy's effect on real output in the short run and increases the magnitude of its effect on net exports.
D) It decreases the magnitude of a given fiscal policy's effect on real output in the short run and decreases the magnitude of its effect on net exports.
Correct Answer:
Verified
Correct Answer:
Verified
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