Assume the Multiplier Is 5 and That the Crowding-Out Effect

question 273

Multiple Choice

Assume the multiplier is 5 and that the crowding-out effect is $20 billion. An increase in government purchases of $10 billion will shift the aggregate-demand curve to the

• A)right by $150 billion.
• B)right by $70 billion.
• C)right by $30 billion.
• D)None of the above is correct.

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Definitions:

Self-Contradictory

Characterized by statements or propositions that are logically inconsistent with each other, leading to a contradiction.

Genus

Genus denotes a class or group of entities that share common characteristics, serving as a part of the hierarchical classification in biology and logic.

Differentia

The characteristic that distinguishes a species or a member of a species from all others of the same genus or category.

Genus

A principal taxonomic category that ranks above species and below family, and is used in the classification of living and fossil organisms.