Question
Fill in the blanks Using Fiscal Policy to stimulate the economy can end up hurting private business as increase government debt can limit the availability
Fill in the blanks
Using Fiscal Policy to stimulate the economy can end up hurting private business as increase government debt can limit the availability of cash for businesses. This is not as true in the US currently because we have a lot of older people who were productive in their lifetimes and thus making the US of the most capital rich societies ever on Earth:_______________(true, false)
This may come to an end with the baby boomer retirement (which is estimated to peak in 2022) and will reduce the capital available for both government and business:_______________(true, false)
The effect of the government using too much of the capital available is called the:_______________(crowding out effect, automatic stabilizer, negative shock, fiscal effect, none of the listed answers)
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