Which of the following tends to make aggregate demand shift further to the right than the amount by which government expenditures increase? a. the crowding-out effect b. the interest-rate effect c. the multiplier effect d. the exchange-rate effect
Which of the following tends to make aggregate demand shift further to the right than the amount by which government expenditures increase? a. the crowding-out effect b. the interest-rate effect c. the multiplier effect d. the exchange-rate effect
Chapter11: Fiscal Policy
Section: Chapter Questions
Problem 2SQP
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Question
Which of the following tends to make aggregate demand shift further to the right than the amount by which government expenditures increase?
a. |
the crowding-out effect
|
|
b. |
the interest-rate effect
|
|
c. |
the multiplier effect
|
|
d. |
the exchange-rate effect
|
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