AP Macroeconomics Question 154: Answer and Explanation

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Question: 154

8. Use the following three responses to answer the question: Fiscal policy is not always effective because of

I. crowding out.

II. rational expectations.

III. the balanced budget amendment.

  • A. I only
  • B. II only
  • C. II and III
  • D. I and II
  • E. I, II, and III

Correct Answer: D