The second-round effects of expansionary Fiscal Policy when the FED has a binding zero interest rate policy are: a) decrease in investment, shift down of AE (aggregate expenditure) and decrease in income. b) increase in income, increase in money demand and no change in the interest rate. c) none of the listed options. d) no change in investment, no shift of the AE and no change in income. e) increase in investment, shift up of AE and increase in income.

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