True or false: 1. The fiscal deficit is defined as Yd - T. 2. When the government spendings increases, G, and this cause

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True Or False 1 The Fiscal Deficit Is Defined As Yd T 2 When The Government Spendings Increases G And This Cause 1 (85.93 KiB) Viewed 52 times

True or false: 1. The fiscal deficit is defined as Yd - T. 2. When the government spendings increases, G, and this causes investments to fall, I, we say that there has been a displacement effect. 3. An increase in the government deficit causes the interest rate to fall. 4. Expansionary fiscal policy consists of increasing G and/or reducing T. 5. Fiscal policy is in the hands of the executive branch and the legislative branch. 6. When the fiscal deficit is zero, we say that the government budget is balanced. 7. Unlike businesses and households, the government does not have to borrow when it runs a deficit. 8. The fiscal deficit is defined as G-T. 9. The objective of an expansionary fiscal policy is to stimulate the economy so that GDP, employment and consumption increase. 10. The objective of an expansionary fiscal policy is to stimulate the economy so that GDP, employment and consumption increase.