Assuming No Crowding-Out, Investment-Accelerator, or Multiplier Effects, How Will a $200

question 105

Multiple Choice

Assuming no crowding-out, investment-accelerator, or multiplier effects, how will a $200 billion increase in government expenditures shift aggregate demand?

• A)It will shift aggregate demand right by more than $200 billion.
• B)It will shift aggregate demand right by $200 billion.
• C)It will shift aggregate demand right by less than $200 billion.
• D)It will shift aggregate demand left by more than $200 billion.

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Definitions:

Conversion

involves an unauthorized act that deprives an owner of personal property without their consent.

Impliedly

In a manner that is suggested or hinted at, rather than being directly stated or expressed.

Abandoned

Refers to property that has been left by its owner without any intention to reclaim or use it again.

Knock-Out Rule

A principle in contract law that resolves conflicts in standard form contracts (often in international trade) by nullifying conflicting terms and substituting them with terms of a neutral nature.