All of the following make the use of fiscal policy less attractive except
A) expansionary fiscal policy tends to cause inflation and offsets some of the increased consumer spending.
B) that it cannot be effective,unless it is accommodated with expansionary monetary policy.
C) the substantial margin of error in the value of the multiplier.
D) the legislative lag,which is the time it takes for Congress and the President to pass and implement the measure.
E) the crowding out effect,which is the decrease in private spending that occurs due to increased government spending.
Correct Answer:
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Q1: Taxes,savings,and imports tend to magnify the effect
Q2: Suppose the Asian financial crisis decreased U.S.exports.In
Q3: Which of the following is TRUE?
A)Points along
Q3: If consumption spending increases because people feel
Q4: The effects of tax cuts or government
Q5: Fiscal policy is
A)the selling of government bonds
Q5: What typically happens to imports as income
Q6: Economic growth would be illustrated by
A)a rightward
Q7: Which of the following is NOT one
Q8: When spending and incomes in an economy
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