Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Finance Theory And Policy

Authors: Paul R. Krugman, Maurice Obstfeld, Marc J Melitz,

11th Edition

013451954X, 9780134519548

More Books

Students also viewed these Finance questions