As Discussed in the Case in Point on the Size

question 177

Multiple Choice

As discussed in the Case in Point on the size of the fiscal multiplier, a study conducted by John Taylor on the effect of fiscal policy since the year 2000 suggests that

• A) the multiplier effect of fiscal policy is much less than that for monetary policy.
• B) temporary fiscal policy financed through government borrowing implies a multiplier value between 0.8 and 1.5.
• C) fiscal policy has little effect on the economy and that the multiplier value is effectively zero.
• D) statistical models are inadequate to determine the multiplier and the multiplier value likely varies based on the state of the economy.

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Definitions:

Heterozygous Individuals

Organisms that have two different alleles for a given gene, resulting in genetic variation.

Phenotypic Expression

Phenotypic expression is the observable physical and physiological traits of an organism resulting from the interaction of its genetic makeup with the environment.

Heterozygous

Having two different alleles for a particular gene, one inherited from each parent.

Allelic Form

Variations of a gene that occur in the same place on a chromosome.