A Smaller Crowding-Out Effect

question 60

Multiple Choice

A smaller crowding-out effect:

• A)increases the magnitude of a given fiscal policy's effect on AD and increases the magnitude of its effects on net exports.
• B)increases the magnitude of a given fiscal policy's effect on AD and decreases the magnitude of its effects on net exports.
• C)decreases the magnitude of a given fiscal policy's effect on AD and increases the magnitude of its effects on net exports.
• D)decreases the magnitude of a given fiscal policy's effect on AD and decreases the magnitude of its effects on net exports.

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Definitions:

Scar

Fibrous tissue replacing normal tissues; also called cicatrix.

Secondary Union

The healing of a wound or bone fracture over an extended period, typically resulting in scar formation.

Edema

Edema is a medical condition characterized by an excess accumulation of fluid in the body's tissues, causing swelling.

Epithelial Tissue

A kind of tissue that covers the external surfaces of organs and the lining of blood vessels, in addition to the internal surfaces of cavities found within numerous internal organs.