If the crowding-out effect is strong, how will the potency of discretionary fiscal policy be affected?
a. It will make fiscal policy more potent.
b. It will make fiscal policy less potent.
c. The potency of fiscal policy will be unaffected.
d. The potency of contractionary will be reduced.
b
Economics
You might also like to view...
Suppose there is an increase in expected future output. This will cause which of the following to occur?
A) the IS curve to shift left in the current period B) the IS curve to shift right in the current period C) the LM curve to shift up in the current period D) the LM curve to shift down in the current period
Economics
Average total cost is very high when a small amount of output is produced because
a. average variable cost is high. b. average fixed cost is high. c. marginal cost is high. d. marginal product is high.
Economics