The Multiplier Effect

question 87

Multiple Choice

The multiplier effect

• A)and the crowding-out effect both amplify the effects of an increase in government expenditures.
• B)and the crowding-out effect both diminish the effects of an increase in government expenditures.
• C)diminishes the effects of an increase in government expenditures,while the crowding-out effect amplifies the effects.
• D)amplifies the effects of an increase in government expenditures,while the crowding-out effect diminishes the effects.