Question 38 0.1 pts When contractionary fiscal policy leads to O less private investment because of higher interest rates, the change in investment is called crowding in by economists, @ more private investment because of lower interest rates, the change in investment is called crowding in by economists. O less private investment because of lower interest rates, the change in investment is called crowding in by economists, @ less private investment because of higher interest rates, the change in investment is called crowding out by economists.Question 36 0.1 pts Which of the following is an automatic stabilizer? I. inheritance taxes Il. government payments to war veterans Ill. aid to families with dependent children IV. sales taxes O I. II, Ill, and IV O I, II, and Ill only O ll and Ill only Ill onlyQuestion 35 0.1 pts Exhibit: Fiscal Policy Options Price LRAS level SRAS, P C Pb P ADD ADo AD, Real GDP per year Suppose the aggregate demand curve is AD,. All of the following events would more likely bring the economy back to the natural rate of unemployment except The government orders a one-time surcharge of 10% to be added to individual income tax liabilities. Businesses increase investment in response to tax breaks for businesses. The Federal Reserve buys bonds on the open market. O The government orders a cut in withholding rates designed to increase disposable income and boost consumption,Question 39 0.1 pts The use of government expenditures and taxes to influence the level of economic activity is called fiscal policy. O True False