Which of the Following Statements About the Effects of an Increase

question 89

Multiple Choice

Which of the following statements about the effects of an increase in government purchases is most accurate?

• A) In the classical model,it will cause complete crowding out.In the short-run macro model,crowding out will be incomplete.
• B) In the classical model,it will cause incomplete crowding out.In the short-run macro model,crowding out will be complete.
• C) Crowding out will be complete in both the classical and short-run macro model.
• D) Crowding out will be incomplete in both the classical and short-run macro model.
• E) In the classical model,the increase in government spending will lead to a decrease in investment spending and autonomous consumption.In the short-run macro model,it will not.

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Definitions:

Increasing Latitude

Refers to moving towards the poles (north or south) from the equator, generally associated with changes in climate, biodiversity, and daylight hours.

Permafrost

A layer of soil or rock, below the surface of the earth, that remains frozen for two or more consecutive years, found mostly in polar regions.

Permanently Frozen Ground

Ground that remains at or below 0°C (32°F) for at least two consecutive years, typically found in polar regions, known as permafrost.

Hadal Zone

The Hadal Zone refers to the deepest regions of the ocean, typically found in oceanic trenches, and ranges in depth from about 6,000 to 11,000 meters.