According to Keynesian economists,the primary problem with using fiscal policy as a stabilization tool is that
A) fiscal policy does not have the effect on output in practice that it should have in theory.
B) fiscal policy will be effective only if it is funded through lump-sum tax changes.
C) fiscal policy will be effective only if it is funded through permanent changes in taxes.
D) fiscal policy is inflexible because a large portion of government spending is planned years in advance and cannot easily be changed.
Correct Answer:
Verified
Q1: The primary deficit is
A)the amount by which
Q3: Which of the following would NOT act
Q4: The type of tax receipts that has
Q5: The total spending by government during a
Q6: What portion of government purchases of goods
Q7: Interest payments by the government as a
Q8: The main sources of the Canadian government
Q9: Assume the marginal tax rate for income
Q10: The political process by which fiscal policy
Q11: Since the 1950s,transfer payments' share of GDP
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