Question 12 0.1 pts An expansionary fiscal policy will result in the Treasury selling more bonds, the price of bonds falling, and interest rates rising. True False Question 26 0.1 pts An expansionary fiscal policy is likely to O decrease a government budget surplus (or increase a budget deficit) and increase borrowing by the Treasury which will sell more bonds. increase a government budget surplus (or increase a budget deficit) and decrease borrowing by the Treasury which will buy more bonds. O increase a government budget surplus (or increase a budget deficit) and increase borrowing by the Treasury which will sell more bonds. O decrease a government budget surplus (or increase a budget deficit) and decrease borrowing by the Treasury which will buy more bonds. Question 29 0.1 pts Suppose that when income taxes are reduced by $400 billion, households increase consumption by 80% of the resulting change in disposable income. Suppose also that the multiplier is 2. At a given price level, the aggregate demand curve shifts to the right by $320 billion. $400 billion. $640 billion. $800 billion. Question 33 0.1 pts Which of the following statements is true regarding the government budget? The government's budget has been in deficit since the 1960s. The government's budget has been in deficit since the 1960s except for a brief period since 2012. O The government's budget was generally in surplus until the 1980s, then mostly in deficit since except for a brief period between 1998 and 2001. O The government's budget was generally in deficit since the 1960s, except for a brief period between 1998 and 2001