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Assuming the economy is at full employment, under which of the following circumstances will an increase in government spending NOT result in crowding out? A
Assuming the economy is at full employment, under which of the following circumstances will an increase in government spending NOT result in crowding out?
A Saving is completely insensitive to changes in interest rates.
B Net exports are completely insensitive to changes in foreign exchange rates.
C Aggregate supply is completely insensitive to changes in the price level.
D Private investment spending is completely insensitive to changes in interest rates.
E Foreign financial capital is completely insensitive to changes in foreign exchange rates .
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