With respect to diffusion of responsibility, the diffusion effect ...

[jlmhmf]

With respect to diffusion of responsibility, the diffusion effect is always greater than the size effect.
 
  Indicate whether the statement is true or false

Question 2

As the Fed lowers the federal funds rate,
 
  A) the price level falls.
  B) real GDP decreases.
  C) aggregate demand increases.
  D) aggregate supply increases.
  E) aggregate income decreases.

[ultraflyy23]

Answer to Question 1

FALSE

Answer to Question 2

C

[jlmhmf]

TYSM

[kjohnson]

Gracias!