A Problem That Makes Fiscal Policy Less Effective Is That

question 125

Multiple Choice

A problem that makes fiscal policy less effective is that:

• A) fiscal policy must be offset by monetary policy.
• B) government spending is a relatively small portion of GDP.
• C) government spending does not directly affect aggregate demand.
• D) higher taxes or increased borrowing to fund government spending can reduce aggregate demand.

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Definitions:

Ethical Dilemma

A situation where a person must choose between options that are or seem to be equally morally correct or incorrect.

Industrial Espionage

The act of illegally obtaining trade secrets or confidential information about a company's competitors for competitive advantage.

High-Context Culture

Cultures in which communication relies heavily on contextual elements like social norms and roles, with less explicit verbal information needed.

Japanese

Japanese refers to anything related to Japan, its people, language, or culture.