Due to Crowding-Out Effects,other Things Being Equal,in What Direction Will

question 14

Multiple Choice

Due to crowding-out effects,other things being equal,in what direction will net exports and investment tend to move in relation to a change in transfer payments?

• A)Net exports will tend to move in the opposite direction from a change in transfer payments, and investment will tend to move in the same direction.
• B)Net exports and investment will tend to move in the same direction as a change in transfer payments.
• C)Net exports and investment will tend to move in the opposite direction from a change in transfer payments.
• D)Net exports will tend to move in the same direction as a change in transfer payments, and investment will tend to move in the opposite direction.

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