The multiplier effect on real GDP occurs because

Select one:

a.an autonomous change in expenditure causes an induced change in consumption expenditure.

b.of income taxes.

c.changes in price levels affect our willingness to invest, consume, import and export.

d.of recessionary or inflationary gap.

e.of government stabilisation policies.

The crowding-out effect implies

Select one:

a.government spending crowding-out private spending.

b.private saving crowding-out government saving.

c.private investment crowding-out public saving.

d.government investment crowding-out private sector investment.

e.public savings reducing private savings.