The traditional Keynesian approach to fiscal policy assumes
A) current taxes are the only taxes taken into account by firms and consumers.
B) the focus of attention should be the long run.
C) prices are flexible while interest rates are not.
D) exchange rates are fixed.
Correct Answer:
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Q236: Discretionary fiscal policy
A) is not very effective
Q237: Suppose there are two economies that are
Q238: Deficit financing
A) is when the government adjusts
Q239: All of the following are automatic stabilizers
Q240: All of the following are automatic stabilizers
Q242: In the traditional Keynesian model, if the
Q243: What are the effects of fiscal policy
Q244: In the traditional Keynesian model, if the
Q245: What are the automatic stabilizers the United
Q246: In the traditional Keynesian model, an increase
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