The "No - Markets Fail Often" camp agrees with all of the following statements except which one?
A) Tax cuts are less effective than government spending for speeding up the economy because savings can cause transmission breakdowns.
B) Market failures create a need for hands-on government.
C) Democratically elected politicians are the right people to make choices about how to spend taxpayers' money.
D) Government spending is determined by political influence rather than need.
E) Tax increases are preferred to reduced government spending for slowing down the economy.
Correct Answer:
Verified
Q21: Which government fiscal policy is a negative
Q22: Which government fiscal policy is a positive
Q23: The size of the multiplier effect is
Q24: The "Yes - Markets Self-Adjust" camp agrees
Q25: The fiscal policy to counter an inflationary
Q27: When real GDP exceeds potential GDP, fiscal
Q28: Which government fiscal policy is a positive
Q29: Fiscal policy is
A) the use of government
Q30: Which event has a multiplier effect and
Q31: The fiscal policy to counter a recessionary
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