Mainstream economists believe that Keynesian economist overstate the effect of the multiplier effect.Which of the following statements would a mainstream economists NOT consider to be accurate.
A) effects of a fiscal stimulus are small and short lived
B) effects of a fiscal stimulus are incapable of working fast enough to make a difference
C) a fiscals stimulus does not provide a 'free lunch' but does 'crowd out' private consumption expenditure and investment
D) a fiscal stimulus results in bigger government, lower potential GDP, and slower real GDP growth
E) a fiscal stimulus is a vital tool to fight recession and depression due to the multiplier effect
Correct Answer:
Verified
Q7: The federal budget
A)is required to balance by
Q28: As contrasted to the Keynesian view, mainstream
Q31: When the government's outlays exceed its tax
Q32: The federal budget is decided upon by
Q34: As contrasted to the mainstream view, Keynesian
Q34: If tax revenue is $230 billion and
Q35: The national debt can only be reduced
Q36: The national debt is the amount
A)by which
Q96: National debt decreases in a given year
Q98: When government outlays are less than tax
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