A smaller crowding-out effect:
A) increases the magnitude of a given fiscal policy's effect on unemployment in the long run and increases the magnitude of its effects on net exports.
B) increases the magnitude of a given fiscal policy's effect on unemployment in the long run and decreases the magnitude of its effects on net exports.
C) decreases the magnitude of a given fiscal policy's effect on unemployment in the long run and increases the magnitude of its effects on net exports.
D) decreases the magnitude of a given fiscal policy's effect on unemployment in the long run and decreases the magnitude of its effects on net exports.
E) does not affect the magnitude of a given fiscal policy's effect on unemployment in the long run.
Correct Answer:
Verified
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