Solved

Due to Crowding-Out Effects,other Things Being Equal,in What Direction Will

Question 98

Multiple Choice

Due to crowding-out effects,other things being equal,in what direction will net exports and investment tend to move in relation to a change in taxes?


A) Net exports will tend to move in the same direction as a change in taxes, and investment will tend to move in the opposite direction.
B) Net exports will tend to move in the opposite direction as a change in taxes, and investment will tend to move in the same direction.
C) Net exports and investment will tend to move in the same direction as a change in taxes.
D) Net exports and investment will tend to move in the opposite direction from a change in taxes.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions