Business, 25.11.2019 20:31, Livi9666

The united states is experiencing a recession and congress decides to adopt an expansionary fiscal policy to stimulate the economy. in this case, the crowding-out effect suggests that investment spending would:
a. increase, thus decreasing aggregate demand and partially offsetting the fiscal policy
b. increase, thus increasing aggregate demand and partially reinforcing the fiscal policy
c. decrease, thus decreasing aggregate demand and partially offsetting the fiscal policy
d. decrease, thus increasing aggregate demand and partially offsetting the fiscal policy

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The united states is experiencing a recession and congress decides to adopt an expansionary fiscal p...