Cassiopeia is a country facing an acute financial crisis. coupled with a negative growth rate, the rate of inflation in the economy has increased to almost 12 percent. the government of cassiopeia has recently appointed a panel of experts to suggest suitable fiscal measures. ronald boyle, a member of the national trade union in cassiopeia, feels that the best policy on the part of the government would be to announce an income tax rebate in the current year. however, danny cox, an economist, feels that income tax rebates will only reduce government revenue. according to him, a substantial increase in aggregate demand can only result from government investment in real assets. in claiming that public spending on real assets will result in a significant increase in gdp, danny is ignoring the fact that: a. fiscal expansion is also likely to increase interest rates. b. consumption is determined by real income and not nominal income. c. borrowing is usually easier for the government than for private firms. d. long-term development is usually driven by the growth of core industries in an economy. e. private sector investment in public infrastructure is usually limited.