Suppose there are both multiplier and crowding out effects but without any accelerator effects. An increase in government expenditures would

a. shift aggregate demand right by a larger amount than the increase in government expenditures.
b. shift aggregate demand right by the same amount as the increase in government expenditures.
c. shift aggregate demand right by a smaller amount than the increase in government expenditures.
d. Any of the above outcomes are possible.

ANSWER:

d. Any of the above outcomes are possible.