Which of the following is false?
A) The multiplier effect of an increase in government purchases implies that the increase in aggregate demand will tend to be greater than the initial fiscal stimulus, other things equal.
B) Expansionary fiscal policy will tend to decrease the demand for dollars relative to other currencies.
C) Big increases and big decreases in real GDP are both lessened by automatic changes in income tax receipts.
D) None of the above are false; all are true.
Correct Answer:
Verified
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