The ________ view says that fiscal stimulus has a multiplier effect that makes it a ________ tool to fight a deep recession.

Question

Quizplus · Accepted Answer

The Keynesian view is that fiscal stimulus has a multiplier effect, meaning that for every dollar spent by the government, it stimulates more than one dollar of economic activity. This view argues that during a deep recession, fiscal stimulus can be a powerful tool to stimulate economic growth and reduce unemployment.

The ________ View Says That Fiscal Stimulus Has a Multiplier