Which of the following is not a likely outcome of counter-cyclical fiscal policy?
A)It will reduce aggregate demand if used to eliminate an inflationary gap.
B)It will increase interest rates if used to eliminate an inflationary gap.
C)It will likely raise the exchange rate if used to eliminate an inflationary gap.
D)It can always be directed at a specific region of the country.
E)It will likely reduce unemployment if used to eliminate an inflationary gap.

Question

Quizplus · Accepted Answer

The Answer of Which of the following is not a likely outcome of counter-cyclical fiscal policy?
A)It will reduce aggregate demand if used to eliminate an inflationary gap.
B)It will increase interest rates if used to eliminate an inflationary gap.
C)It will likely raise the exchange rate if used to eliminate an inflationary gap.
D)It can always be directed at a specific region of the country.
E)It will likely reduce unemployment if used to eliminate an inflationary gap.

Which of the Following Is Not a Likely Outcome of Counter-Cyclical