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4) According to supply-side economics, changes in marginal tax rates will have which of the following effects? A) change the incentive to work B) change the incentive to save C) change the incentive to invest D) all of the above 5) The crowding-out effect is A) the tendency of contractionary fiscal policy to cause an increase in planned investment or planned consumption in the private sector. B) the tendency of expansionary fiscal policy to cause an increase in planned investment but not in planned consumption in the private sector. C) the tendency of expansionary fiscal policy to cause a decrease in planned investment or planned consumption in the private sector. D) the tendency of contractionary fiscal policy to cause an increase in planned investment but a decrease in planned consumption in the private sector. 6) Expansionary fiscal policy fails to achieve the government's national economic goals. Some economists claim it is due to crowding out. What evidence would be consistent with this claim? A) An increase in consumer spending occurred. B) The interest rate increased. C) Saving decreased. D) The price level decreased. 7) Which of the following are time lags that fiscal policy makers must cope with? A) recognition lags B) action lags C) effect lags D) All of the above are correct