Which of the Following Is False

Multiple Choice

Which of the following is false?

A) The result of an expansionary fiscal policy in the short run would be an increase in the price level and an increase in RGDP.
B) Starting at a full-employment equilibrium, the only long-term effect of an increase in aggregate demand includes an increase in real output.
C) Starting at a full-employment equilibrium, once the economy has returned to its long run equilibrium after an increase in government purchases, employment will be equal to full employment.
D) When the government borrows money to finance a deficit, it increases the overall demand for money in the money market, driving interest rates up.
E) None of the above are false; all are true.