The Crowding Out of Private Spending by Government Spending Will

question 247

Multiple Choice

The crowding out of private spending by government spending will be greater the

• A)less sensitive consumption,investment,and net exports are to changes in interest rates.
• B)more sensitive consumption,investment,and net exports are to changes in interest rates.
• C)less sensitive consumption,investment,and net exports are to changes in the price level.
• D)more sensitive consumption,investment,and net exports are to changes in the price level.

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