When the government increases its spending growth,the subsequent increase in nongovernment spending stimulates aggregate demand and is called the _____ effect.
A) crowding out
B) endowment
C) multiplier
D) automatic stabilizing
Correct Answer:
Verified
Q45: Imagine an economy in a recession resulting
Q46: An increase in government spending growth will
Q47: Fiscal policy involves:
A) government borrowing to finance
Q48: To fight a recession,the government can:
A) increase
Q49: A decrease in consumption growth will cause
Q51: Examples of expansionary fiscal policy include increases
Q52: Figure: Aggregate Demand Shifts Q53: Other things being equal,a decrease in government Q54: Figure: Aggregate Demand Shifts 2 Q55: If consumption growth decreases,the government spending
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