Multiple Choice
It will be difficult to institute fiscal policy in a stabilizing manner because politicians will find
A) it more attractive to raise taxes than to increase spending.
B) it attractive to increase taxes during a recession, but they will be reluctant to reduce them during an expansion.
C) budget deficits attractive during a recession, but they will be reluctant to run budget surpluses during an expansion.
D) budget surpluses attractive during a recession, but they will be reluctant to run budget deficits during an expansion.
Correct Answer:

Verified
Correct Answer:
Verified
Q24: The crowding-out effect indicates that budget deficits<br>A)
Q25: According to the Keynesian view, the large
Q26: Which of the following will be most
Q27: Use the figure below to answer the
Q28: Both the crowding-out effect and new classical
Q30: Which of the following best explains why
Q31: Which one of the following is an
Q32: Which of the following best describes the
Q33: Which of the following tends to make
Q34: Supply-side economics stresses that<br>A) budget deficits will