Which of the following statements is FALSE?
A) Government purchases are a type of non-income-determined spending and are subject to a multiplier effect.
B) Fiscal policy affects the level of economic activity by influencing the flows of injections into and leakages from the spending stream.
C) The appropriate fiscal policy to reduce unemployment is to increase government expenditures and taxes.
D) The deliberate changing of government expenditures and taxes to control demand-pull inflation or unemployment is discretionary fiscal policy.
Correct Answer:
Verified
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