Effectiveness of fiscal policy is dampened due to all of the following reasons, except one. The exception is:
A) time lags.
B) mistakes in forecasting non-government expenditure.
C) reduction of investment due to higher interest rate.
D) lower value of domestic currency.
Correct Answer:
Verified
Q89: Example 7.2
Y=C+I+G+X-Z
Consumption C = 25 + 0.8(Y
Q90: Example 7.2
Y=C+I+G+X-Z
Consumption C = 25 + 0.8(Y
Q91: Example 7.2
Y=C+I+G+X-Z
Consumption C = 25 + 0.8(Y
Q92: Example 7.2
Y=C+I+G+X-Z
Consumption C = 25 + 0.8(Y
Q93: In an open economy with constant prices,
Q95: Longer the time-lags in fiscal policy, lesser
Q96: If households expect that the expenditure programs
Q97: Increased government spending would have positive effects
Q98: In 2006, Canada was the only country
Q99: Equilibrium in an open economy means that
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