To the extent that the crowding out effect exists, the effect of expansionary fiscal policy is dampened.
Correct Answer:
Verified
Q113: Discretionary fiscal policy involves changes in government
Q114: Both increases in government spending and investment
Q115: A larger marginal propensity to consume results
Q116: Increases in investment spending are not subject
Q117: Increases in government spending are not subject
Q119: Discretionary fiscal policy is aimed at making
Q120: Contractionary fiscal policy is used when the
Q121: Expansionary fiscal policy aims to increase national
Q122: If the economy starts from a position
Q123: The only factor that will shift investment
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