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Ann [662]
3 years ago
9

The multiplier effect a. diminishes the effects of an increase in government expenditures, while the crowding-out effect amplifi

es the effects. b. and the crowding-out effect both amplify the effects of an increase in government expenditures. c. and the crowding-out effect both diminish the effects of an increase in government expenditures. d. amplifies the effects of an increase in government expenditures, while the crowding-out effect diminishes the effects.
Social Studies
1 answer:
zimovet [89]3 years ago
8 0

Answer:

d. amplifies the effects of an increase in government expenditures, while the crowding-out effect diminishes the effects.

Explanation:

The multiplier effect <em>amplifies the effects of an increase in government expenditures, while the crowding-out effect diminishes the effects</em>. The multiplier effect refers to the increase in spending that results in snowball effects on other aspects of the economy. On the other hand, the crowding-out effect diminishes the effects.

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