Professor Cowen's objection to fiscal policy spending by government is:
A. the government may rush to start stimulus spending and not spend money in the most effective way possible.
B. the government may put too much thought into the spending projects and confuse stimulus spending with industrial policy.
C. households and businesses might realize that the boost in spending is from the government and simply save the income they receive.
D. the government may not have enough money available to do an appropriate amount of spending.
Answer: A. the government may rush to start stimulus spending and not spend money in the most effective way possible.
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A change in the income of buyers will normally change demand.
Answer the following statement true (T) or false (F)
The demand curve for the output of a perfectly competitive firm is
a. perfectly inelastic. b. perfectly elastic. c. a rectangular hyperbola with an elasticity equal to 1. d. identical in shape to the market demand curve.
Some people have argued that government should provide only those goods that we would truly define as public goods. If so, which of the following should government produce?
a. National Defense b. day-care centers for children of working mothers c. mail delivery d. unemployment benefits e. subsidies for agricultural products
The Baker Plan emphasized renewed commercial bank loans as a way to restart capital flows to Latin America
Indicate whether the statement is true or false