The U.S.fiscal stimulus in 2009 did not increase GDP substantially because
A) the Federal Reserve was decreasing interest rates and real-world estimates for the multiplier might be less than one.
B) the Federal Reserve was increasing interest rates and real-world estimates for the multiplier might be less than one.
C) state governments were decreasing spending and real-world estimates for the multiplier might be less than one.
D) state governments were increasing spending and real-world estimates for the multiplier might be less than one.
Correct Answer:
Verified
Q188: If the multiplier is 4, a decrease
Q189: If an increase in investment of $100
Q190: An increase in autonomous consumption has the
Q191: Assume that the MPC is 0.80 and
Q192: The oversimplified multiplier formula assumes that the
A)level
Q194: According to Baumol and Blinder, the real-world
Q195: Movements along the consumption function are called
A)autonomous
Q196: For a given price level, a downward
Q197: If the multiplier is 4 and real
Q198: A major Internet service provider decides to
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