Assume That If There Were No Crowding Out, an Increase

question 104

Multiple Choice

Assume that if there were no crowding out, an increase in government spending would increase GDP by $100 billion. On the other hand, if there had been full crowding out, then GDP would have

• A) increased by more than $100 billion.
• B) increased by less than $100 billion.
• C) increased by $100 billion.
• D) not increased.