If Increases in Government Spending on Infrastructure Projects "Crowd Out

question 96

Multiple Choice

If increases in government spending on infrastructure projects "crowd out" private investment spending, this will lead to

• A) higher levels of real income and wages in the future.
• B) no effects on real income and wages in the future.
• C) lower levels of real income and wages in the future.
• D) higher levels of real income and lower levels of wages in the future.

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