The _{--------------------}view Says That Fiscal Stimulus Has a Multiplier Effect

question 86

Multiple Choice

The _{--------------------}view says that fiscal stimulus has a multiplier effect that makes it a_{--------------------}tool to fight a deep recession.

• A)Keynesian; weak
• B)mainstream; powerful
• C)Keynesian; powerful
• D)"free lunch"; powerful
• E)None of the above answers is correct.

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Definitions:

Discount

A reduction in the price of goods or services, often to attract consumers or to reward volume purchases.

Effective Interest Method

An accounting technique used to calculate the amortized cost of a bond or loan and to allocate the interest expense over the borrowing's life.

Sold At A Discount

The sale of an asset or service for a price lower than its nominal or face value.

Classified Balance Sheet

A financial statement that groups a company's assets, liabilities, and equity into categories for detailed analysis.