Suppose the government increases its purchases by $16 billion. If the multiplier effect exceeds the crowding-out effect, then

A. the aggregate-demand curve shifts to the left by more than $16 billion.
B. the aggregate-demand curve shifts to the right by more than $16 billion.
C. the aggregate-supply curve shifts to the right by more than $16 billion.
D. the aggregate-supply curve shifts to the left by more than $16 billion.

Ans: B. the aggregate-demand curve shifts to the right by more than $16 billion.