Expansionary fiscal policy financed by government borrowing can lead to
A) higher interest rates and lower private investment under the crowding-out view.
B) an increase in aggregate demand under the Keynesian view.
C) no change in aggregate demand under the new classical view.
D) all of the above.
Correct Answer:
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Q124: Which of the following is the best
Q125: Use the figure below to answer the
Q127: The crowding-out effect suggests that
A)expansionary fiscal policy
Q128: The new classical model implies that the
Q129: Which of the following groups would be
Q130: The new classical model implies that a
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