MCQOPTIONS
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MCQOPTIONS
| 1. |
Suppose the government increases its purchases by Rs16 billion. If the multiplier effect exceeds the crowding out effect, then ? |
| A. | The aggregate supply curve shifts to the right by more than Rs 16 billion |
| B. | The aggregate demand curve shifts to the left by more than Rs 16 billion |
| C. | The aggregate demand curve shifts to the right by more than Rs 16 billion |
| D. | the aggregate supply curve shifts to the left by more than Rs 16 billion |
| Answer» D. the aggregate supply curve shifts to the left by more than Rs 16 billion | |