A contractionary fiscal policy will reduce a government budget deficit or increase a government budget surplus and reduce borrowing by the Treasury.

Adverse selection will occur in a market as a result of

A) rational ignorance. B) moral hazard. C) the sale of "lemons." D) asymmetric information.

According to Keynesians, the primary reason money is not neutral is

A) rational expectations. B) price stickiness. C) reverse causation. D) misperceptions over the aggregate price level.