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13 Dec 2019

If the investment accelerator from an increase in government purchases is larger than the crowding-out effect, then

A. the multiplier is probably less than one.

B. the multiplier is probably equal to one.

C. the multiplier is probably zero.

D. the multiplier is probably greater than one.

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Related questions

In the short run, there is an increase in aggregate demand. If price level adjusts upward, how does this effect the multiplier compared to the situation in which the price level does not adjust? Select the best answer below.

a. The multiplier is larger with the price level adjustment than without.

b. The multiplier is the same regardless of price level changes.

c. The multiplier is smaller with the price level adjustment than without.

rubymoose923

Other things equal, the multiplier effect associated with a change in government spending is:

a. greater than that associated with a change in taxes

b. greater than that associated with a change in investment

c. less than that associated with a change in investment

d. equal to that associated with a change in investment

lilacantelope929

Other things equal, the multiplier effect associated with a change in government spending is:

a. greater than that associated with a change in taxes

b. greater than that associated with a change in investment

c. less than that associated with a change in investment

d. equal to that associated with a change in investment

lilacantelope929

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If the investment accelerator from an increase in government purchases is larger than the crowding-out effect, then

A. the multiplier is probably less than one.

B. the multiplier is probably equal to one.

C. the multiplier is probably zero.

D. the multiplier is probably greater than one.

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Principles of Economics

Principles of Macroeconomics

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Weekly leaderboard

If the investment accelerator from an increase in government purchases is larger than the crowding-out effect, then A. the multiplier is probably less than one. B. the multiplier is probably equal to one. C. the multiplier is probably zero. D. the multiplier is probably greater than one.

Unlock all answers

Related textbook solutions

Principles of Economics

Principles of Macroeconomics

Principles of Microeconomics

Related questions

Weekly leaderboard

If the investment accelerator from an increase in government purchases is larger than the crowding-out effect, then

A. the multiplier is probably less than one.

B. the multiplier is probably equal to one.

C. the multiplier is probably zero.

D. the multiplier is probably greater than one.