Multiple Choice
Which of the following is true in the Keynesian model?
A) An easy fiscal policy affects output despite the effect of fiscal policy on the interest rates.
B) An easy monetary policy is associated with an increase in interest rates.
C) An easy fiscal policy is associated with a decrease in interest rates.
D) An easy monetary policy will lead to crowding-out effect.
Correct Answer:

Verified
Correct Answer:
Verified
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