Everything else held constant, a monetary expansion is characterized by ________ output and ________ interest rates

National income minus personal taxes net of transfer payments equals disposable income

a. True b. False Indicate whether the statement is true or false

Crowding out makes fiscal policy more complicated to formulate because it can ________ the theoretical magnitude of the_______.

A. increase; multiplier effect B. reduce; multiplier effect C. reduce; interest rate D. increase; interest rate