Mainstream macroeconomics would suggest that fiscal policy
A. has no effect unless the fiscal policy is accompanied by changes in the money supply.
B. changes aggregate demand and GDP by changing aggregate expenditures.
C. is relatively ineffective because the outcomes are anticipated and offset.
D. affects GDP and the price level through changes in aggregate supply.
Answer: B
Economics
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A) Normative B) Behavioral C) Positive D) Negative
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If the U.S. government increased its holdings of British pounds, definitely
A) the capital and financial account would increase. B) the capital and financial account would decrease. C) there would be an increase in U.S. official reserves. D) there would be a decrease in U.S. official reserves.
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