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True or False
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1
Fiscal policy is enacted by the Federal Reserve Bank.
A)True
B)False
2
Because of multiplier effects, the amount of the fiscal stimulus must be equal to the aggregate demand shortfall.
A)True
B)False
3
An increase in government spending has a greater immediate impact on total spending than a tax cut.
A)True
B)False
4
If fiscal policy is financed by government borrowing, it can lead to crowding out.
A)True
B)False
5
Tax cuts are a preferred fiscal stimulus.
A)True
B)False





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