In the mainstream view, the crowding-out effect from the use of fiscal policy is:
A. Small, especially during a recession
B. Large, especially during a recession
C. Large because the velocity of money is high
D. Small because the velocity of money is low
A. Small, especially during a recession
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Fiscal policy is defined as
A) the discretionary changing of government expenditures and/or taxes to achieve national economic goals. B) the design of a tax system to transfer income from the rich to the poor. C) the use of the taxing power of the government to redistribute wealth in a socially acceptable manner. D) the use of Congressional power to pursue social and political goals.
If an economy produced 60 pounds of sushi at $12 per pound and 15 gallons of sake at $30 per gallon, the total value of these goods and services would be
A) $450. B) $720. C) $1,170. D) $2,700.