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The inflation rate has been low and sometimes at near zero since the beginning of the...

The inflation rate has been low and sometimes at near zero since the beginning of the current recession.

True

False

The Classical school focuses on monetary policy and does not believe that fiscal policy is effective.

True

False

Fiscal policy

is enacted by the Federal Reserve.

involves changing interest rates.

involves changing taxes and government spending.

involves changing the money supply.
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Answer #1

- false

Inflation rate has been fluctuating since current recession of 2008. It has not been low since then.

- true

Classical economists believe that fiscal policy is ineffective in terms of changing gdp, and monetary policy can be effective to change gdp values.

- involves changing taxes and government spending

Changes in taxes and government spending refer to fiscal policy

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