Answer the following statement(s) true (T) or false (F)
1. Critics of a constitutional amendment to balance the federal budget contend that it would reduce or eliminate the ability of fiscal policy to counteract a recession.
2. The crowding-out effect tends to enhance the ability of fiscal policy to combat a recession.
3. Because tax receipts have typically exceed government expenditures, the U.S. government has generally run a budget surplus during the past 50 years.
4. The issuing of new money would likely reduce the crowding out of investment by an expansionary fiscal policy.
5. During the 1980s, supporters of supply-side economics argued that the United States was on the declining portion of its Laffer curve.
1. T
2. F
3. F
4. T
5. T
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