Suppose There Are Both Multiplier and Crowding Out Effects but Without

question 117

Multiple Choice

Suppose there are both multiplier and crowding out effects but without any accelerator effects.An increase in government expenditures would

• A)shift aggregate demand right by a larger amount than the increase in government expenditures.
• B)shift aggregate demand right by the same amount as the increase in government expenditures.
• C)shift aggregate demand right by a smaller amount than the increase in government expenditures.
• D)Any of the above outcomes are possible.

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Definitions:

Fibula

A long, thin bone located on the lateral side of the tibia, in the lower leg.

Calcaneus

Also known as the heel bone, the calcaneus is crucial for walking, running, and jumping, absorbing impact and providing leverage.

Conoid Tubercle

A small, bony prominence on the inferior surface of the clavicle, which serves as a ligament attachment site.

Coracoid Process

A small hook-like structure on the lateral edge of the superior anterior portion of the scapula (shoulder blade).