Describe some of the potential problems with using expansionary fiscal policy
What will be an ideal response?
Expansionary fiscal policy tends to cause inflation. It is difficult to accurately measure the size of the multiplier. It can cause different effects based on its financing. It is also politically cumbersome in terms of negotiating, enacting, and implementing the changes.
Economics
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The old adage "rules are made to be broken" would typically be associated with economists who might advocate ________
A) stabilization policy B) monetary policy C) rule-determined policy D) discretionary policy E) fiscal policy
Economics
The years from 1945 to 1973 are notable for ________
A) a Great Moderation B) generally low inflation C) brief, but severe, recessions D) all of the above E) none of the above
Economics