Which of the Following Is False

question 74

Multiple Choice

Which of the following is false?

• A)The multiplier effect of an increase in government purchases implies that the increase in aggregate demand will tend to be greater than the initial fiscal stimulus, other things equal.
• B)Expansionary fiscal policy will tend to decrease the demand for dollars relative to other currencies.
• C)Big increases and big decreases in real GDP are both lessened by automatic changes in income tax receipts.
• D)None of the above are false; all are true.

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Definitions:

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