Multiple Choice
Economist A believes that the expansionary fiscal policy --- in the form of increased government spending --- should be implemented to remove the economy from the recessionary gap it is currently in.This economist probably believes that
A) crowding out will not present much of a problem.
B) crowding out will be a big problem.
C) crowding out is irrelevant to the degree of effectiveness of fiscal policy.
D) zero crowding out is unlikely.
E) c and d
Correct Answer:

Verified
Correct Answer:
Verified
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