The Coordination Problem Accompanying Expansionary Fiscal Policy Refers to

Multiple Choice

The coordination problem accompanying expansionary fiscal policy refers to

A) the tendency of increases in government expenditures to expand private sector output by an even larger amount.
B) the possibility that demand stimulus programs will direct resources toward unproductive projects and areas of full employment.
C) the possibility that borrowing to finance current spending will lead to lower future interest rates.
D) the reluctance of Congress to approve increases in government spending during a recession.