Question

In the traditional Keynesian model, an increase in government spending

A) causes the C + I + G + X line to shift upward by the full amount of the increase in government spending.

B) causes the C + I + G + X line to shift upward by an amount less than the increase in government spending.

C) causes the C + I + G + X line to shift upward by more than the increase in government spending.

D) causes no change in the C + I + G + X line.

Answer

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