The crowding-out effect works through interest rates to:
A. decrease the effectiveness of contractionary fiscal policy.
B. decrease the effectiveness of expansionary fiscal policy.
C. increase the effectiveness of expansionary fiscal policy.
D. increase the effectiveness of contractionary fiscal policy.
Answer: B
Economics
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A) there is a sustained increase in the price level. B) there is a one-time increase in the price level. C) there is a decrease in the expected rate of inflation. D) there is a decline in the price level.
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What matters most to importers and exporters is the nominal exchange rate
Indicate whether the statement is true or false
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