Which of the following is false?
A) Expansionary fiscal policy will tend to cause net exports to fall.
B) The larger the crowding out effect, the smaller the actual effect of a given change in fiscal policy.
C) The crowding out effect does not occur with a tax change.
D) Starting from an initial recession equilibrium, expansionary fiscal policy could potentially increase employment to the full employment level.
E) Starting from an initial recession equilibrium, a government tax increase would tend to increase the severity of the recession.
Correct Answer:
Verified
Q23: Due to crowding-out effects, other things being
Q24: A larger crowding-out effect:
A)increases the magnitude of
Q25: Due to crowding-out effects, other things being
Q26: A smaller crowding-out effect:
A)increases the magnitude of
Q27: A larger crowding-out effect:
A)increases the magnitude of
Q29: An increase in government purchases or a
Q30: A larger crowding-out effect:
A)increases the magnitude of
Q31: A smaller crowding-out effect:
A)increases the magnitude of
Q32: A decrease in government purchases or an
Q33: A larger crowding-out effect:
A)increases the magnitude of
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