If private sector investment does not respond much to interest rate changes, then
A) there will be more crowding out when expansionary policies are undertaken.
B) there will be less crowding out when expansionary policies are undertaken.
C) fiscal policy will be less effective than monetary policy.
D) monetary policy will be more effective than fiscal policy.
Correct Answer:
Verified
Q104: Some economists argue that
A) discretionary monetary policy
Q105: Suppose the government increases government purchases and
Q106: Crowding out occurs when expansionary fiscal policy
Q107: The various studies of the size of
Q108: Which of the following statements is true?
A)
Q110: When contractionary fiscal policy leads to
A) less
Q111: Expansionary fiscal policy leads to
A) lower interest
Q112: An expansionary fiscal policy is likely to
A)
Q113: An expansionary fiscal policy is likely to
Q114: The crowding-out effect refers to which of
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents