Due to crowding-out effects, other things being equal:
A) net exports and investment will tend to move in the same direction as a change in taxes.
B) net exports and investment will tend to move in the opposite direction from a change in taxes.
C) net exports will tend to move in the same direction as a change in taxes and investment will tend to move in the opposite direction.
D) net exports will tend to move in the opposite direction as a change in taxes and investment will tend to move in the same direction.
Correct Answer:
Verified
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