In a closed economy, expansionary fiscal policy causes:
A) interest rates to rise and aggregate demand to increase.
B) interest rates to fall and aggregate demand to decrease.
C) interest rates to rise and aggregate demand to decrease.
D) interest rates to fall and aggregate demand to increase.
E) no change in interest rates.
Correct Answer:
Verified
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Q14: When the government employs a combination of
Q15: The conflicting effects of an expansionary fiscal
Q16: As a government adopts an expansionary fiscal
Q18: In an open economy, expansionary fiscal policy
Q19: In a closed economy, an expansionary fiscal
Q20: In an open economy, an expansionary fiscal
Q21: In an open economy, contractionary fiscal policy
Q22: An expansionary fiscal policy:
A) puts upward pressure
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