In the Long Run, Most Economists Agree That a Permanent

question 151

Multiple Choice

In the long run, most economists agree that a permanent increase in government spending leads to

• A)no decrease in private spending.
• B)a decrease in private spending by less than the amount that government spending increased.
• C)a decrease in private spending by the same amount that government spending increased.
• D)a decrease in private spending by more than the amount that government spending increased.
• E)an increase in private spending by more than the amount that government spending increased.

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