Question
Which of the following accurately describes a limitation of fiscal policy? The spending multiplier will always be more effective than the tax multiplier because of
Which of the following accurately describes a limitation of fiscal policy?
The spending multiplier will always be more effective than the tax multiplier because of savings.
The government can have no direct impact on aggregate demand in the economy.
The government can influence the price level but not real output or aggregate demand.
The government has the ability to slow inflation but not close a recessionary gap.
There is always a time lag to discretionary fiscal policy between action and impact.
Step by Step Solution
3.48 Rating (151 Votes )
There are 3 Steps involved in it
Step: 1
1 There is always a time lag to discretiona...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get StartedRecommended Textbook for
Microeconomics
Authors: Paul Krugman, Robin Wells
3rd edition
978-1429283427, 1429283424, 978-1464104213, 1464104212, 978-1429283434
Students also viewed these Economics questions
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
View Answer in SolutionInn App