Fiscal stimulus is most likely to direct resources into productive projects when spending decisions are left in the hands of
A) government agencies.
B) consumers.
C) Congress.
D) lobbyists and special-interest groups.

Question

Quizplus · Accepted Answer

When spending decisions are left in the hands of consumers, they are most likely to choose projects that are in line with their needs and preferences, which leads to more efficient allocation of resources. Government agencies, Congress, lobbyists, and special-interest groups may be influenced by political considerations or personal interests, which can lead to less efficient spending.

Fiscal Stimulus Is Most Likely to Direct Resources into Productive