To the extent that a direct expenditure offset results from an ...

[stevenposner]

To the extent that a direct expenditure offset results from an expansionary fiscal policy,
 
  A) the fiscal policy will not be discretionary.
  B) the time lags associated with the implementation of fiscal policy will shorten.
  C) the stimulative effect will be less than anticipated.
  D) the stimulative effect will be more than anticipated.

Question 2

An optimizing economic agent will use the ________ rate while calculating the economic cost of a loan.
 
  A) exchange B) nominal interest C) real interest D) tax

[kishoreddi]

Answer to Question 1

C

Answer to Question 2

C

[stevenposner]

Thanks for the timely response, appreciate it

[cici]

Gracias!