Due to crowding-out effects, other things being equal, in what direction will net exports and investment tend to move in relation to a change in transfer payments?
Question 11 options:
Net exports will tend to move in the opposite direction from a change in transfer payments, and investment will tend to move in the same direction.
Net exports and investment will tend to move in the same direction as a change in transfer payments.
Net exports and investment will tend to move in the opposite direction from a change in transfer payments.
Net exports will tend to move in the same direction as a change in transfer payments, and investment will tend to move in the opposite direction.