Question: Consider the following statement: In the classical model, just as an increase in government purchases causes complete crowding out, so a decrease in government purchases

Consider the following statement: “In the classical model, just as an increase in government purchases causes complete crowding out, so a decrease in government purchases causes complete crowding in.”
a. In this statement, explain what is meant by “crowding in” and “complete crowding in.”
b. Is the statement true?

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