Which of These Is NOT a Cost of Using Fiscal

question 213

Multiple Choice

Which of these is NOT a cost of using fiscal or monetary policy to address a jobless recovery?

• A) Expansionary monetary policy may lead to inflation in the long run.
• B) Government spending might crowd out spending by consumers and firms.
• C) Lower interest rates encourage consumers to increase spending.
• D) Cutting taxes and increasing government spending increases the national debt.

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Definitions:

Horizontal Displacement

The distance an object or particle moves horizontally over a period of time, often measured in physics and engineering contexts.

Release of Ejecta

Refers to the process where material is expelled or thrown out, often used in the context of volcanic eruptions or meteorite impacts.

Greenhouse Effect

The process by which radiation from a planet's atmosphere warms the planet's surface to a temperature above what it would be without its atmosphere.

Toxic Wastes

Hazardous waste materials that can cause death, injury, or health issues in living organisms upon exposure.