Suppose There Are Both Multiplier and Crowding Out Effects but Without

question 276

Multiple Choice

Suppose there are both multiplier and crowding out effects but without any accelerator effects. An increase in government expenditures would definitely

• A)shift aggregate demand right by a larger amount than the increase in government expenditures.
• B)shift aggregate demand right by the same amount as an the increase in government expenditures.
• C)shift aggregate demand right by a smaller amount than the increase in government expenditures.
• D)Any of the above outcomes are possible.

---

Definitions:

Psychological Attitudes

Mental and emotional positions held by individuals towards objects, people, or situations, influencing their behaviors and perceptions.

Archetypes

Universal, inherited models of people, behaviors, or personalities present in the collective unconscious, as identified by Carl Jung.

Extraverted Intuiting Type

A personality type in Jungian psychology characterized by a preference for focusing on possibilities, external data, and abstract understanding through intuition.

Pleasure

A feeling of satisfaction or joy, often pursued as a goal in various human behaviors.