In January 2009, the President submitted a bill to Congress in order to stimulate the economy and increase employment. The legislation was passed in March 2009, and the spending occurred from June 2009 to March 2011. As a result
A) the full effect of the fiscal policy change would not be felt until after March 2011 because of the effect time lag.
B) the full effect of the fiscal policy change would not be felt until after March 2011 because of the recognition time lag.
C) the full effect of the fiscal policy change would be felt by March 2011 because people anticipated the spending and changed their behavior accordingly.
D) the full effect of the fiscal policy change would be felt when the last of the funds were spent by the government.
A
You might also like to view...
The data in the table above shows the consumption by families in a small (poor) economy. The families consume only salt and bread. The reference base period is 2011. The cost of the CPI market basket in 2010 is
A) $52.00. B) $5.00. C) $64.00. D) $8.50. E) unable to be calculated because information is needed about the quantities purchased in 2010.
A logarithmic variable cost function implies that
A) marginal cost is increasing at a decreasing rate. B) marginal cost is increasing at an increasing rate. C) marginal cost is constant. D) marginal cost is decreasing as quantity increases.
An increase in the money supply typically leads to
A) a reduction in the rate of interest. B) a decrease in the price level. C) a reduction in the velocity of money. D) an inward shift in money demand.
The depreciation of the Japanese yen in 2002 would ease their problems with regard to recession
a. True b. False Indicate whether the statement is true or false