Answer Happy

Assume that a temporary increase in G refers to the government
spending an extra 200 million dollars on domestic goods and
services for one year. Assume further that a permanent increase in
G refers to the government spending an extra 200 million dollars on
domestic goods and services forever. Choose the most appropriate
option
A.
Relative to a permanent increase in G, the increase in Y and the
decrease in E in the short-run is greater when the increase in G is
temporary
B.
The decrease in Y and increase in E in the short-run is the same
irrespective of whether the increase in G is temporary or
permanent
C.
Relative to a temporary increase in G, the increase in Y and the
decrease in E in the short-run is greater when the increase G is
permanent
D.
The increase in Y and decrease in E in the short-run is the same
irrespective of whether the increase in G is temporary or
permanent
E.
A permanent increase in G has no effect on Y in the short-run but a
temporary increase in G increases Y