Which of the following is false? a. Expansionary fiscal policy ...

[bcretired]

Which of the following is false?
 a. Expansionary fiscal policy will tend to cause net exports to fall.
 b. The larger the crowding out effect, the smaller the actual effect of a given change in fiscal policy.
 c. The crowding out effect does not occur with a tax change.
 d. Starting from an initial recession equilibrium, expansionary fiscal policy could potentially increase employment to the full employment level.

Question 2

According to the equation of exchange, if the money supply is 800 million, real GDP is 3,000 million, and nominal GDP is 4,000 million, then the velocity of money is equal to:
 a. 3.5.
  b. 1.7.
  c. 10.3.
  d. 5.
  e. 2.

[sarajane1989]

Answer to Question 1

c

Answer to Question 2

d