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Which of the following is a reason for federal deficit spending? O The balanced budget multiplier. O To solve the problem of a liquidity trap.

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Which of the following is a reason for federal deficit spending? O The balanced budget multiplier. O To solve the problem of a liquidity trap. Politics. O All of the above. Which of the following can be an impediment to effective discretionary fiscal policies? O Not knowing the multiplier. O Lag effects. O Insufficient knowledge and understanding on the part of the policy makers. O All of the above. Question 6 2 pts A problem with using monetary policies to fight an unemployment problem is that the Fed cannot force people to borrow money. O True O False

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