All the following are correct except:
A) Fiscal policy shifts the AD function.
B) Monetary policy shifts the AD function.
C) Fiscal policy may crowd out private investment.
D) Fiscal expansion raises AD and output and reduces interest rates.
Correct Answer:
Verified
Q94: Changes in _, by changing interest rates
Q95: Monetary policy is expected to influence aggregate
Q96: If the economy is in an AD/AS
Q97: If the economy was experiencing a recessionary
Q98: Faced with an inflationary gap, policy makers
Q100: The "crowding out" effect occurs when:
A) fiscal
Q101: According to the basic AD/AS model, an
Q102: If both the central bank and the
Q103: Suppose that a serious recession threatens the
Q104: Crowding out occurs when:
A) households change their
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