1. Which of the following are likely to limit the effectiveness of fiscal policy
ID: 1188131 • Letter: 1
Question
1. Which of the following are likely to limit the effectiveness of fiscal policy in the United States?
A. the "crowiding out" effect
B. Time lags between the recognition a macro problem and the implemenation of corrective measures.
C. Political considerations which could alter the content and timing of fiscal policy
D. All of the above.
E. None of the above.
2. The essence of fiscal policy entails
A. determining how much aggregate demand needs to be increased or reduced
B. Understanding the impact of the MPC and the multiplier.
C. Selecting the appropriate policy tools needed to induce the required increase of reduction.
D. All fo the above.
E. none of the above.
3. Traditional Keynesian economics emphasizes the amount of spending more than what spending is for. The "second crises" of economic theory contends that fiscal policy should also be concerned about
A. the socially desirable mix of output as well as the quantity of output.
B. ensuring that government is concerned about the quallity or content of its spending as well as the quantity of spending.
C. both a and b are correct.
D. neither a or b is correct.
4. Which of the following are areas of debate that accompany fiscal policy decision-making?
A. size of government.
B. temporary of permantent spending.
C. sector impact.
D. all of the above.
E. none of the above.
5. Fiscal policy and monetary policy are
A. different means used to attain different goals
B. different means used to attain the same goals
C. teh same means to attain the same goals
D. the same means to attain different goals
6. Each of the following is an automatic stabilizer except
A. unemployment compensation
B.direct taxes
C.welfare payments
D. social security benefits
Explanation / Answer
1. D)
2. D)
3. C)
4. D)
5.) B
6.) D (Payments are the same whether the economy is good or bad).
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.