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Which of the Following Statements Is (Are) True? I

question 187

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Which of the following statements is (are) true? I. At full employment, expansionary fiscal policy results in an increase in aggregate demand, increasing output temporarily above full employment.
II) When the government runs a deficit, it must sell bonds.
III) When the federal government spends more than tax revenues permit, it can sell bonds only to foreigners.


Definitions:

Companionate Love

A form of love characterized by deep affection, friendship, and emotional intimacy, as opposed to passionate love.

Actor/Observer Bias

A cognitive bias involving the tendency to attribute one's own actions to external factors, while attributing others' actions to their personalities.

Mere Exposure Effect

The mere exposure effect is a psychological phenomenon where people tend to develop a preference for things merely because they are familiar with them.

Attributional Style

A person's habitual way of explaining outcomes in their life, whether these are positive or negative events.

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