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Evaluate the following statement about expenditure-changing and expenditure-switching policies. 1. An expenditure-changing policy induces changes in...

Evaluate the following statement about expenditure-changing and expenditure-switching policies.

1. An expenditure-changing policy induces changes in aggregate demand, via fiscal policy or monetary policy, whereas an expenditure-switching policy diverts expenditures away from foreign goods to domestic goods.

A. True

B. False

2. Which of the following are examples of an expenditure-changing policy? Check all that apply.

A. Import barriers

B. Fiscal policy

C. Monetary policy

D. Currency devaluation

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