Which of the following is false?
a. Expansionary fiscal policy will tend to cause net exports to fall
b. The larger the crowding out effect, the smaller the actual effect of a given change in fiscal policy.
c. The crowding out effect does not occur with a tax change.
d. Starting from an initial recession equilibrium, expansionary fiscal policy could potentially increase employment to the full employment level.
c
You might also like to view...
A contractionary monetary policy can reduce the inflation rate without causing a rise in unemployment if expectations are formed rationally and monetary policy is
A) combined with expansionary fiscal policy. B) carried out in total secrecy. C) publicly announced and credible. D) combined with contractionary fiscal policy.
If there is a sudden jump in the inflation rate, the purchasing power of financial assets will immediately fall
a. True b. False Indicate whether the statement is true or false
If M = the quantity of money, m the money multiplier, MB the Monetary Base, C = Currency, D = Deposits, R = Reserves, RR = required reserves, and ER = excess reserves, then m would equal:
A. M /MB. B. D - C C. C + D. D. R / ER.
The __________ Act protects employee rights and the __________ Act protects employer rights.
Fill in the blank(s) with the appropriate word(s).