Author Question: When the crowding-out effect of an increase in government purchases is included in the analysis: a. ... (Read 90 times)

Davideckstein7 · **on:** Jun 30, 2018

When the crowding-out effect of an increase in government purchases is included in the analysis:
a. AD shifts left, but by more than the simple multiplier analysis would imply.
b. AD shifts left, but by less than the simple multiplier analysis would imply.
c. AD shifts right, but by more than the simple multiplier analysis would imply.
d. AD shifts right, but by less than the simple multiplier analysis would imply.

Question 2

When depository institutions have negative excess reserves, it indicates that the banking system is not loaned up..
a. True
b. False
Indicate whether the statement is true or false