Multiple Choice
Which of the following is a problem with discretionary fiscal policy as an economic stabilization tool?
A) Discretionary changes in fiscal policy can be easily anticipated by private decision makers.
B) It is difficult to properly time discretionary changes in fiscal policy.
C) Discretionary fiscal policy is only effective during a recession.
D) Discretionary fiscal policy is only effective during an economic boom.
Correct Answer:
Verified
Correct Answer:
Verified
Q29: Use the figure below to answer the
Q30: According to the Keynesian view, which of
Q31: The Keynesian model provided an explanation for<br>A)
Q32: The optimal time for the implementation of
Q33: The expenditure multiplier indicates that<br>A) changes in
Q35: The Great Depression provided support for Keynes'
Q36: As the marginal propensity to consume (MPC)
Q37: The marginal propensity to consume is defined
Q38: Keynes rejected the view that lower wages
Q39: Changes in government spending and/or taxes as