If consumption growth decreases,the government spending "multiplier effect" means that in order to counter the recession:
A) the government cannot use fiscal policy.
B) the government is forced to use both tax cuts and increases in
.
C) fiscal policy needs to raise
by less than the decrease in
.
D) fiscal policy needs to raise
by more than the decrease in
.
Correct Answer:
Verified
Q50: When the government increases its spending growth,the
Q51: Examples of expansionary fiscal policy include increases
Q52: Figure: Aggregate Demand Shifts Q53: Other things being equal,a decrease in government Q54: Figure: Aggregate Demand Shifts 2 Q56: An increase in government spending growth will Q57: The multiplier effect is the: Q58: A decrease in consumption growth will cause Q59: A decrease in consumption growth will cause Q60: As the government builds new schools,the construction
A) subsequent consumer
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