A direct expenditure offset occurs when an increase in government spending
A) results in an increase in household saving for retirement.
B) is followed by an increase in consumer spending
C) results in a decrease in private spending.
D) is followed by an increase in taxes.
Correct Answer:
Verified
Q110: The government has decided to give every
Q111: Q112: The crowding-out effect is Q113: "Expansionary fiscal policy is always 100 percent Q114: According to the Ricardian equivalence theorem, a Q116: An increase in government spending will have Q117: According to the Ricardian equivalence theorem, budget Q118: Whenever government spending is a substitute for Q119: Direct expenditure offsets are Q120: Suppose that real GDP is initially $20
A) due to the
A) the discretionary changing
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