Answered step by step
Verified Expert Solution
Question
1 Approved Answer
when the economy is going through a very difficult time and consimption is going down sharply , the government very often will send out transfer
when the economy is going through a very difficult time and consimption is going down sharply , the government very often will send out transfer payment to the population , so that it can strengthen aggregate demand. a) one way to do it is to give everybody cash and let them spend and buy what they want. b) another way to do it would be to give them food cards and gas cards that they can only spend on fuel and food , this might prevent people from using the cash on negative habits. Both of these approaches have afvantages or disadvantages . if you were in the government , which approaches would you use and explain
Step by Step Solution
There are 3 Steps involved in it
Step: 1
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 Started