Economists Who Are Concerned with the Effect of Fiscal Policy

Multiple Choice

Economists who are concerned with the effect of fiscal policy on the ability of households and firms to borrow to finance consumption will focus on ________,and economists who want to know whether the government's fiscal policy is sustainable will focus on ________.

A) yearly budget deficits; the federal debt
B) the federal debt; yearly budget deficits
C) yearly budget deficits; both the federal debt and yearly budget deficits
D) the federal debt; both the federal debt and yearly budget deficits