What is the disadvantage of using expenditure-based fiscal policy?

What will be an ideal response?

Rising government expenditures leads to more government borrowing, and such borrowing can soak up resources that would otherwise have been used by households and firms. Some economists believe that rising government expenditure displaces private economic activity like consumption and investment. This implies that employment increases by less than it would have otherwise increased.

Economics

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If the U.S. real exchange rate decreases, U.S. imports will ________ and U.S. exports will ________

A) rise; rise B) rise; fall C) fall; rise D) fall; fall

Economics

What are four inefficiencies of a barter system?

What will be an ideal response?

Economics