Keynesians believe the economy can be managed using monetary and fiscal policy.

What is the relationship between fiscal multipliers and the "zero lower bound"?

A) Fiscal multipliers cannot fall below zero. B) When monetary policy has hit the zero lower bound, fiscal multipliers are likely to be larger than normal. C) At the zero lower bound, a fiscal contraction is actually expansionary. D) At the zero lower bound, fiscal policy works by shifting the aggregate supply curve, rather than shifting the aggregate demand curve.

"A positive economic statement is always true and a normative economic statement is always false." Do you agree or disagree with this statement? Explain

What will be an ideal response?