Do policy makers know the exact value of the fiscal multiplier?
A)No, economists have almost no idea of the value of fiscal multipliers.
B)No, they are not known with complete accuracy.
C)Yes, economists know the precise value of the multiplier.
D)Yes, although there is a very small range of uncertainty in the value.

Question

Quizplus · Accepted Answer

The value of the fiscal multiplier is not known with complete accuracy and there is a range of uncertainty. This is due to the complexity of the economy and the difficulty of isolating the effects of fiscal policy from other factors influencing the economy. Therefore, policy makers do not know the exact value of the fiscal multiplier.

Do Policy Makers Know the Exact Value of the Fiscal