Question: C is not correct. Except that Which one should be the answer and why? The use of government purchases (G) as a fiscal policy tool

C is not correct. Except that Which one should be the answer and why?

C is not correct. Except that Which one should be the answer

The use of government purchases (G) as a fiscal policy tool can have an effect on long - run growth in the economy. Under what circumstances might an increase in G cause the level of potential output (Y ) to increase? O A. If the increase in G leads to a permanent increase in the level of autonomous saving in the economy. O B. If the increase in G is offset by an equal decrease in C, I, and NX. O C. If the increase in G causes a permanent increase in the marginal propensity to consume, which causes a permanent rightward shift of the AD curve. O D. If the increase in G crowds out private investment. O E. If the increase in G is spent on public infrastructure that increases the productivity of private - sector production

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