The multiplier effect a. diminishes the effects of an increase in government expenditures, while the crowding-out effect amplifies the effects. b. and the crowding-out effect both amplify the effects of an increase in government expenditures. c. and the crowding-out effect both diminish the effects of an increase in government expenditures. d. amplifies the effects of an increase in government expenditures, while the crowding-out effect diminishes the effects.
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