Question
Suppose the government spend $10 billion on a public works program in order to stimulate aggregate demand. If the crowding out effect exceed the multiplier
Suppose the government spend $10 billion on a public works program in order to stimulate aggregate demand. If the crowding out effect exceed the multiplier effect, will the aggregate demand curve shift to the right by more or less than 10 billion?
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The crowding out effect occurs when increased government spending leads to higher interest rates whi...
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Calculus
Authors: Jon Rogawski, Colin Adams, Robert Franzosa
4th Edition
1319055842, 9781319055844
