Question
10. Which one of the following statements is NOT true? a. Expansionary fiscal policy has an effect on interest rates. b. Crowding out dilutes the
10. Which one of the following statements is NOT true?
a. Expansionary fiscal policy has an effect on interest rates.
b. Crowding out dilutes the effect of expansionary fiscal policy.
c. Expansionary fiscal policy is employed to offset recessionary gaps.
d. When crowding out occurs, fiscal policy has a larger effect on aggregate demand.
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Principles of Economics
Authors: N. Gregory Mankiw
8th edition
1305585127, 978-1305971493, 978-1337516860, 1337516864, 978-0357539200, 978-1305585126
