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39. Which of the following statements is true? a Most economists support the use of fiscal policy to help push the economy in a desired

39. Which of the following statements is true?

a

Most economists support the use of fiscal policy to help push the economy in a desired direction, and the use of monetary policy for fine tuning.

b

Many economists recommend the use of tax cuts to enhance work effort, investment, and innovation, and the use of government spending on public capital projects (infrastructure).

c

The US (gross) national debt was $10.0 trillion in May 2017.

d

All of the above.

e

Only a) and b)

38. Which of the following statements is true?

a

The government spent $700 billion to help financial institutions through the Troubled Asset Relief Program (TARP) of October 2008.

b

A political business cycle may destabilize the economy: Election years have been characterized by more expansionary policies regardless of economic conditions.

c

There is crowding-out when an increase in one sectors spending increases another sectors spending.

d

All of the above.

e

Only a) and b)

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