Multiple Choice
Under which of the following situations can fiscal policy affect people's expectations?
A) If the interest rate on borrowing is higher than the interest rate on lending
B) If the interest rate on lending is more than the interest rate on borrowing
C) If the interest rate on borrowing and lending are the same
D) If the interest rate on lending changes more than a change in the interest rate on borrowing
Correct Answer:
Verified
Correct Answer:
Verified
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