1) Determine whether the following questions are true or false.

a) A higher marginal propensity to consume implies that consumers are more responsive to changes in income and that fiscal policy will be more effective.

b) "Classical economists believe that sustained, long-run monetary policy can accelerate economic growth."

c) A reduction in income tax rates will increase household consumption and shift the AD curve outward.

d) Government expenditure crowds out private household savings in loanable funds markets.