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    Modern Principles Macroeconomics
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    Exam 18: Fiscal Policy
  5. Question
    Crowding Out
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Crowding Out

Question 52

Question 52

Multiple Choice

Crowding out:


A) limits the increase in aggregate demand due to fiscal policy.
B) affects contractionary fiscal policy.
C) increases the multiplier effect.
D) shifts the LRAS curve to the left.

Correct Answer:

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