1. Deficit Doves believethat:

a) deficits cause highinterestrates; b) high interest rates cause biggerdeficits;

c) deficits arealwaysgood; d) all of theabove

1. The limits to KEMPare:

1. I may be insensitive to changes in i, i may insensitive to changes in Ms, Y maybe insensitive to changes inI;
2. I may be insensitive to changes in Y, I may be insensitive to changes in i, i maybe insensitive to changes inMs;
3. I may be insensitive to changes in i, i may be insensitive to changes in Ms, Y maybe insensitive to changes ini;
4. I may be insensitive to changes in i; Ms may be insensitive to changes in i, Y maybe insensitive to changes inI