Suppose There Are Both Multiplier and Crowding Out Effects but Without

question 117

Multiple Choice

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

• 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 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.

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Definitions:

Sigmund Freud

An Austrian neurologist and the founder of psychoanalysis, a method for treating psychopathology through dialogue.

Dreaming

A series of thoughts, images, and sensations occurring in a person's mind during sleep, often associated with rapid eye movement (REM) sleep.

Problem-focused Theory

A theory that emphasizes solving the root cause of stress rather than simply managing its symptoms.

Dreaming

The experience of envisioned images, sounds, or other sensations during sleep.