What Impact Does a Smaller Crowding-Out Effect Have on the Magnitude

question 111

Multiple Choice

What impact does a smaller crowding-out effect have on the magnitude of a given fiscal policy's effect on unemployment and net exports?

• A)It decreases the magnitude of a given fiscal policy's effect on unemployment in the long run and increases the magnitude of its effect on net exports.
• B)It increases the magnitude of a given fiscal policy's effect on unemployment in the long run and increases the magnitude of its effect on net exports.
• C)It does not affect the magnitude of a given fiscal policy's effect on unemployment in the long run or the magnitude of its effect on net exports.
• D)It increases the magnitude of a given fiscal policy's effect on unemployment in the long run and decreases the magnitude of its effect on net exports.

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Definitions:

Abdominal Muscles

A group of muscles in the abdomen that includes the rectus abdominis, transversus abdominis, and the internal and external obliques, providing support to the core.

Intercostals

Muscles located between the ribs that assist with the breathing process by facilitating the expansion and contraction of the chest cavity.

Diaphragm

A large, dome-shaped muscle located below the lungs that contracts and relaxes to aid in breathing by changing the volume of the thoracic cavity.

Scalenes

A group of three muscles in the neck that assist in breathing and movement of the cervical spine.