An increase in government spending may expedite recovery from a recession in the short run, but in the long run this policy may
A) reduce investment in new capital.
B) make domestic businesses less competitive in international markets as the dollar appreciates in value.
C) raise interest rates and reduce consumer expenditures on automobiles and new houses.
D) All of the above are correct.
Answer: D
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Government assistance programs in the United States a. have expanded significantly since their establishment in 1964. b. consist mainly of cash payments. c. are funded entirely by the federal government. d. have typically required beneficiaries to participate in community work or job training programs
e. are primarily funded by state governments.
Paul, a Canadian citizen, purchases oranges grown in Florida. This purchase is an example of
a. a U.S. import and a Canadian export b. a U.S. export and a Canadian import c. an export for both the U.S. and Canada d. an import for both Canada and the U.S.